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If you operate a brick and mortar business— providing goods and some services, from cupcakes or cat toys, to cardigans or consultations— it’s highly likely you collect sales tax from your customers. In fact, 45 states and the District of Columbia require businesses to collect sales tax – making you, the business owner, responsible for calculating, collecting and paying sales tax. It isn’t automatically calculated!

After the Supreme Court’s landmark South Dakota v. Wayfair, Inc. decision in 2018, this is now true even for online sellers, like entrepreneurs with ecommerce sites or creatives on sites like Etsy. In a nutshell, the ruling means that online retailers are now required to collect sales tax from customers on shipped items in individual states, even if they do not have a physical presence in those states. And guess what? Every state has different sales tax laws. What a headache!

This new ruling makes sales infinitely more complicated for entrepreneurs, as they now must navigate nearly 11,000 local tax jurisdictions within the United States, including state, city and county regulations.

Let’s face it— no one goes into business because they want to spend time calculating how much to tax their customers or pay the government. And who really has time to stay up to date on these ever-changing tax laws? Certainly not busy mamas who are running a family and a business simultaneously.

That’s where the new Sales Tax Calculator courtesy of QuickBooks comes in— your secret weapon for conquering sales tax.

Getting Started with the Free Sales Tax Calculator

By going to this website, business owners can use the new Sales Tax Calculator from QuickBooks to get an accurate estimate on tax rates. Once you arrive at the calculator, you’ll be prompted to enter your business address, and the calculator will then provide you with your estimated rates, including the percentage for state, county, city and local districts.

QuickBooks Sales Tax

For those who want to go a step further than the free calculator, QuickBooks Sales Tax is also available within QuickBooks. It’s easy to set up, and with QuickBooks Sales Tax, users gain access to the following features:

  • Automatic Sales Tax Tracking: When you add sales tax to an invoice, the calculations are automatically taken care of. Easy as pie with no extra steps. Intuit does all the math, taking into consideration thousands of state, city and county sales tax rates around the U.S.

 

  • Product Categorization: Did you know that rules for product taxability can change from state to state? Using this tool, once your products are categorized by type, QuickBooks makes sure the correct sales tax is applied to your transactions based on the location of sales you indicate.

  • Know How Much You Owe: Access sales tax information whenever and wherever you need it with the Sales Tax Liability Report. This report will keep you up to date on not only how much you’ve collected, but also how much you owe – broken down by tax agency – ensuring you’re always prepared.

  • File Your Way: When it’s time to file your taxes, you can choose to file electronically or manually. Either way, QuickBooks keeps track of payment due dates so that you can avoid unnecessary fees, and as an added bonus, QuickBooks also tracks both state and local sales tax due dates.

 

We hope these tools can serve as your secret weapon to conquering these new changes in the world of sales tax. No matter what kind of amazing products you are selling, technology like QuickBooks is always there to support you.

 

 

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