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Managing eCommerce sales tax is one of the most confusing and overlooked aspects of running an online store. With rules that vary by state and constantly changing regulations, it's easy to make costly errors. Here are the top 3 mistakes online sellers often make—and how to avoid them. 1. Ignoring Economic Nexus Laws Many sellers assume they only need to collect sales tax in their home state. However, economic nexus laws now apply in most U.S. states, meaning if your sales exceed a certain threshold (often $100,000 or 200 transactions), you may need to collect and remit sales tax there—even without a physical presence. 2. Incorrect or Incomplete Tax Collection Settings Relying solely on default tax settings in platforms like Shopify or Amazon can lead to incorrect tax collection. Rates can vary by ZIP code, and not all products are taxed equally. It’s important to review and update your tax collection rules regularly. 3. Missing Filing Deadlines Even if you collected the correct am...

E-commerce sales tax can be a complicated and ever-evolving area for online sellers. With tax laws varying by state, province, and even country, businesses must ensure they are compliant to avoid costly mistakes. Understanding and managing e-commerce sales tax effectively is critical for any online business. Here are some of the top mistakes to avoid when managing e-commerce sales tax: 1. Ignoring Nexus Requirements One of the most common mistakes online sellers make is overlooking the concept of "nexus." Nexus refers to a business’s physical or economic connection to a state or jurisdiction that requires it to collect sales tax. Many e-commerce businesses believe they only need to collect sales tax in states where they have a physical presence, but this is no longer the case. Consulting with tax professionals can help to understand this requirement better.  2. Failing to Keep Up with Changing Tax Laws E-commerce sales tax laws are constantly changing. Many online businesses...