Do Internet Businesses Have to Pay Taxes on Online Sales? Find Out Now!
Adding taxes to your online product might seem a little messy if you don’t have the proper eCommerce set-up. It can also mess up that nicely numbered price point that looks appealing to buyers. As a result, some sellers decide to omit the taxes from their website, but that doesn’t mean that they’re exempt from owing the Internal Revenue Service (IRS).
What You Need to Know as a Business Owner
As a business owner, there are some things that you don’t have to pay taxes on—like services, but for product, there absolutely needs to be a tax on it. Now, sales tax varies from state to state, so as an online distributor, it is your job to make sure that you are charging your buyers the appropriate tax rate according to the state where they reside. So you’ll have to know the tax rate for every state so that your buyers are paying the appropriate amount of sales tax.
That can be quite the responsibility and the team at Success Tax Relief can assist you with this.
We know that managing a business can be stressful and the last thing you want to concern yourself with is researching what the sales tax rate is for all 50 states, and then applying them to your online sales operation. As critical as this is, we know that even as a one-man operation, it’s difficult to try and do everything yourself efficiently.
What Exactly Can Success Tax Relief Do?
Success Tax Relief can assist in helping you gather the sales tax information needed to run your online store. We can also assist you in managing your bookkeeping records when it’s time to file for the annual tax season. For instance, if for some reason, you did not collect sales tax online, you will still need to pay the IRS. That means you’ll have to go through all of your online sales for that tax year and calculate the tax amount according to the where the product was shipped.
You wouldn’t be able to add your total sales then multiply it by one sales tax percentage because online sales differ throughout the country. Another thing to consider is if you sell product through Amazon. As a 3rd party distributor, they are obligated to collect taxes on the products they sell, but because there are often several entities involved in a sales transaction, certain tax obligations apply. That is why you should contact the professional experts at Success Tax Relief to help you figure out what how much in sales taxes you need to pay through your Internet store. Call Success Tax Relief today at 877-825-1179 or contact us online to schedule a free consultation. We look forward to speaking with you and answering any questions you might have.