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USA Simplified Sales Tax Program: E-commerce Benefits and Drawbacks Analysis

  • The Simplified Sales Tax program involves 24 US states working together to make sales tax easier for online businesses by standardizing definitions, rates, and filing processes
  • Key benefits include one application to register in all 24 states, free tax compliance services for volunteer sellers, and protection from audit penalties when using certified service providers
  • Major drawbacks are mandatory registration in all 24 participating states even if you have no sales there, loss of vendor discount payments that can total thousands annually, and reduced control over tax filing processes
  • The program works best for large businesses already operating in most SST states and those prioritizing audit protection over cost savings
  • Businesses with limited state presence or those wanting to keep vendor discounts may find better alternatives than the SST program

Source: fiscal-requirements.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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