how to get free sales tax calculations on magento
TRANSCRIPT
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© 2016 Magento, Inc.! Page | 1!
Magento Webinar Series!Premier Spotlight!
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Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 2!
5 STEPS TO SALES TAX AUTOMATION
with MARK FAGGIANO CEO OF
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Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 3!
With!MARK FAGGIANO!!Founder and CEO – TaxJar!@taxjarmark!
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© 2016 Magento, Inc.! Page | 4!
Magento Premier Technology Partners!
Premier Partner! Technology! Total Customers!
Braintree & Express Checkout! 184,000,000+!
Email Automation Platform! 7,500+!
Automated Sales Tax & Free Tax Calcs! 5,000+!
Natural Language Site Search! 300+!
Software Analytics! 250,000+!
Content Delivery Network!Platforms & sites such as GitHub, New Relic,!
Twitter, Vimeo, etc.!
Shipping Platform for Commerce! 55,000+!
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Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 5!
AGENDA!
• The 5 steps to sales tax compliance!
• Why charging the right amount of sales tax is so complicated!
• The anatomy of a sales tax rate!
• Magento sales tax collection the easy (and free) way...!
• Q&A!
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Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 6!
5 STEPS TO SALES TAX COMPLIANCE!
1. Know When you Have Nexus!
2. Register for a Sales Tax Permit!
3. Collect Sales Tax!
4. Report how Much You Collected!
5. File Your Return!
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IS WHAT YOU’RE SELLING TAXABLE?
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WHERE DO YOU HAVE NEXUS?
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NEXUS IS WHEN & WHY YOU CARE!
A presence / connection in a state that’ssignificant enough for you to be required to
comply with sales tax law
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GET A SALES TAX LICENSE
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Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 24!
SALES TAX LICENSES (PERMITS)!
• Can’t legally collect sales tax without one!!
• Need one for each state!!
• Most states are free!
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THE ART OF COLLECTING
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GOLDEN RULE OF TAX COLLECTION!
Collect sales tax when the item sold is shipped to a state where you have nexus
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Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 29!
MULTI-CHANNEL NEXUS!
• Nexus for one channel means nexus for!your entire business!
• Collect on all your channels for all of your nexus states!
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WHAT’S THE CORRECT RATE?!
• Buyer’s state determines tax rate (sourcing)!!
• Tax rate usually = sum of applicable rates!• State!• Local!• Other (i.e., education, transportation)!
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What sales tax rate do you collect?!
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ORIGIN VS. DESTINATION SOURCING!• Origin-based state!
• Tax rate = seller’s location!• One rate for entire state!
!• Destination-based state!
• Tax rate = where item is shipped!• Variable rate!
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Some Products are Taxed Differently!
CLOTHING! FOOD & GROCERIES! TEXTBOOKS!
PRESCRIPTIONS! MAGAZINES! DIGITAL PRODUCTS!
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CLOTHING TAXABILITY IN NY!Sales Tax on a $109 pair of jeans!
Jurisdiction! Tax Rate!
New York! No tax!!
Putnam County! 4%!
Metro Commuter Transit District Tax!
0.0375%!
Total! 4.0375%!
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Handling Sales Tax in Magento!
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TAXJAR’S SMARTCALCS FOR MAGENTO!Install our extension & get FREE, accurate calculations!!
ü Origin vs. Destination & sourcing rules!
ü Local rate !
ü Shipping taxability !
ü Product taxability!
ü Updated rates be free?!
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Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 40!
HOW CAN TAXJAR DO THIS FOR FREE?!
“TaxJar has saved us dozens of hours a month.” !!- Jeff McRitchie, MyBinding.com !
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FILE SALES TAX RETURNS
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FILING RETURNS!
• Filing deadlines usually tied to sales volume!
• Annual, semi-annual, quarterly, monthly!
• Deadlines typically last 2 weeks of the month!
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FILING IN MOST STATES SUCKS!
• Enter your sales & taxes collected !for each jurisdiction!!
• Gets worse if you’re multi-channel!
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44!
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45!
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FREE eBook !Salestax101.com!
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Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 47!
HELPFUL RESOURCES!
• youtube.com/taxjar!• For visual learners!
!• salestaxcommunity.com!• Talk with 5,000 other store owners and tax pros!!!blog.taxjar.com!
• Content just for ecommerce & sales tax!
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Q & A!