- Sales tax can become a horror story for businesses through multiple dangerous scenarios that require careful management and attention
- Multi channel selling creates complications as businesses use various platforms like Amazon, TikTok, and their own websites alongside traditional retail and wholesale channels
- Physical presence through marketplace facilitators can create unexpected sales tax obligations that businesses might neglect to consider
- Drop shipment transactions have unique and confusing sales tax rules, especially when suppliers, retailers, and customers are located in different states with varying nexus requirements
- Marketplace facilitators like Amazon, eBay, TikTok and Etsy are responsible for collecting sales tax but sellers still need to monitor these transactions carefully
Source: taxconnex.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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