Michael J Fleming & Associates

Sales Tax and More Blog

Tax News & Knowledge

Drop Shipping & Resale Certificates for New Sellers

We are often contacted by new sellers looking to begin drop-shipping. They are eager to get started and want to know how to get a resale certificate that their vendors will accept. The problem is there is no one certificate that can be provided to all vendors in all states. Each state has it's own rules about what certificate or alternate documentation a vendor is allowed to accept, and not all vendors will be registered in the same states. In this post we will cover the basics a seller will need to understand before committing to a certificate strategy. 

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Michael Fleming
The Top Five Sales Tax Myths International Sellers Often Believe.

International sellers face the same sales tax issues that US sellers face, but just as in the US there are many myths, misconceptions, and confusion surrounding  sales tax collection responsibilities. Whether you are in the US or overseas, sales tax collection generally boils down to three questions: 1. Do you have nexus? 2. Is what you sell taxable. 3. Are your sales material. In this blog, Mike Fleming addresses some of the common myths or inaccuracies that international sellers often mistakenly believe protect them from having to collect sales tax.

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Michael Fleming
Amazon Collecting Sales Tax in WA Is Not So Great for FBA Sellers.

WA has two taxes that are reported on their sales tax form. The sales tax which is collected and remitted by Amazon and the Business and Occupation (B&O) tax which is not paid by Amazon. Washington states that you still have nexus. Who collects the tax does not change nexus. The state also says each seller still needs to be registered and has to file a sales tax return. You would report 100% of your sales, calculate your B&O, and then calculate your sales tax, after which you take a credit for the tax Amazon paid on your behalf. This has not made life easier for FBA sellers. It has made it more complicated if you are already registered and potentially more dangerous if your not. I was recently interviewed by A2X accounting makers of specialized accounting software for FBA sellers. What follows are some excepts from the first in a series of three posts.

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Michael Fleming
Services Can Be Taxable

Texas is a state (along with at least 17 other states) which taxes all or some commercial janitorial services. When a company gets audited the auditor not only looks at sales, but also purchases. If a seller does not charge you tax on a taxable transaction, you are supposed to self-assess and remit the tax directly to the state yourself. It does not become a tax free transaction. 

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Michael Fleming
What will Amazon do in Oklahoma? Will it hurt or help sellers?

Oklahoma has passed some scary new requirements for eCommerce merchants. The requirements are burdensome, bad for business and come with minimum penalties of $20,000 or 20% of the last 12 months business for each incident of non compliance. Amazon sellers may have an out if Amazon decides to collect the tax. What will they decide and where does that leave the rest of us. This law takes effect 7/1/2018.

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Michael Fleming
When Should Online Sellers consider Sales Tax?

In a recent blog post on Sales Tax Support, Mike Fleming discusses the 5 factors that will help sellers determine if and when they should worry about sales tax.  Sometimes it does not make good business sense to do anything even when the state says you should. In other situations, it's dangerous to do nothing. Learn the difference by reading his post titled, Do Online Sellers Need to Collect Sales Tax? 5 Key Factors!

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Michael Fleming