Just wanted to share some sales tax info to all you shop owners out there. Since we building my site (backend) I found some amazing tools that will make your life so much easier. So let’s get to it.
Local Sales Tax can get a bit tedious depending what state you live in. For an example in California, we have state, local and district tax. Know when you apply it, to what zip codes is not what I’m trying to spend my day doing. So I found this amazing website that does it all for you. It’s called TaxJar (kick me a few dollars and use my affiliate link please) super easy to use. Just select your state, link your store and it’ll automate your sales tax and you can even file via TaxJar.
Now I’m all ready to file my sales taxes for my state. Taxjar works on various platforms such as WooCommerce, Shopify, Etsy and PayPal to name a few.
Let’s dig into the new EU VAT legislation, it’s complicated and it’s a headache for American businesses who have customers in EU countries In a nutshell they have to pay a VAT (value added tax) on all digital products they buy. The best and easiest way, to deal with this issue without blocking your customers from purchasing from you, is an amazing tool called Taxamo. It’s super easy you just install it and enter your MOSS information. But first you would need to get registered for MOSS and you can do so with any country in the European Union, I picked the UK but you can use Ireland if you wish. Trust me you want to get the ball rolling on this because soon they will have this for all products they buy this included anything you ship to them.
What taxamo does, is read their IP address and applies the proper 15 – 21% VAT to the order and reports it. Taxamo is for WooCommerce if you are a Shopify user, they have already implemented this in you dashboard.
Attention Etsy users, unfortunately, Etsy has decided to leave all of their sellers out in the cold on this one. It’s been about 15 days since they left anyone with an update on who they will have their sellers EU VAT compliant. I’ll update this post once they comply.
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