Episode 44 is the second of four shows in a series on eCommerce and Sales Taxes. In this show, we talk with Scott Peterson, Director of Government Relations at Avalara, who is the sponsor for this series. Scott helps understand that whole sales tax collection piece when selling your services online. Your decision and strategy depend on several variables, so we would recommend listening to the show to make sure you are tax-compliant.

We chatted about:

* The differences between sales taxes on products and sales taxes on services

* How to figure out as a business owner whether your services are subject to sales tax

* Whether a single state sales tax rate covers all the services provided in a specific state

* What happens if a service is associated with equipment or a product that needs to be taxed

* The initial steps a business should take to get their sales tax on services in full compliance

The other shows in this series:

Sales Tax Essentials For Online Small Businesses with Jake Estes

Learn How VAT Affects Your Online Sales with Colin Matthews and Matthew Harrison

Your eCommerce Site and Landed Cost with Amy Morgan

Thanks to Our Podcast Sponsor: Avalara

Transcript

You can also download the transcript of this show: The WP eCommerce Show Transcript December 12 2016

Bob Dunn: Hey everyone, welcome to our show. Bob Dunn here, also known as BobWP on the web. Today is part two of our four-part eCommerce sales tax series, brought to you by our sponsor, Avalara. Although sales taxes for your online business is not the most sexy subject, it’s one that you need to know, as it’s a huge part of the success of your online store. That is why we are excited to be able to bring you this series. On the first show, we talked about some insights into the bigger picture of the sales tax essentials that are needed for an online small business, but today we are going to narrow that down a bit more and talk about sales tax and services with Scott Peterson, Director of Government Relations at Avalara.  Welcome to the show, Scott.

Scott Peterson: Thank you Bob. It’s very nice to be on the show.

Bob Dunn: I just have to ask, because I asked Jake last time, are you also in Seattle or not?

Scott Peterson: Not. I live in Nashville, Tennessee.

How is sales tax on services different from sales tax on products?

Bob Dunn: Okay Nashville, Tennessee, so you’re a little bit aways from here. Now, from my own experience, I know that I’ve dealt with clients in the past, I’ve done coaching and consulting, and I know when it comes to sales tax and services, it’s one of those areas where people who sell online may get the most confused. I’m guessing a lot of people who also offer services think that their products, or that people that have products, just need to be taxed. Let’s dive into these questions and clarify that for everyone. I’m going to start with this very first one, Scott.