The SALTcast

The SALTcast

By Ryan Johnson, Jason Parr CEO, Paul Johnson, VPBusinessNewsEducationBusiness News
Download on the App Store

The SALTcast episodes

  • Freight and Shipping Charges for eCommerce Businesses

    Here's a link to the full video broadcast, if you'd rather watch the video.

    This week we are discussing freight and shipping charges for eCommerce businesses. Are they taxable? If so, where? How should FBA sellers set up Amazon with regards to taxing shipping charges? We frequently get these questions and we decided this topic would be great to cover in our podcast today.

    Here are a few other questions we addressed in this episode.

    • Is shipping taxable? 00:40
    • Is shipping taxable in CA? 03:40
    • Should I tax my shipping and handling on Amazon? 04:15
    • Which states say shipping is taxable? 06:10
    • Why must I collect the shipping charge tax when Amazon is the one shipping my product? 10:00
    • What makes shipping taxable? 11:25
    • Why do states care so much about shipping and handling charges? 19:37
    • How does Ebay treat shipping and handling? 20:37
      • 24 min
    • Surprise New Sales Tax Law in Congress?

      Here's a link to the full video broadcast, if you'd rather watch the video.

      The Editorial Board of the Wall Street Journal castigated Republican members of Congress for trying to slip a major sales tax law into a spending bill. Many parties are hoping to overturn Quill and it looks like Congress is also hoping to change it. We'll give you our take on this new development.

      Also, we'll answer a question Mike got from Seth Fineberg: What's the number one sales tax issue e-commerce sellers face? It's really 3 questions they have: (1) Do I really have to collect sales tax on my online sales in the US? (2) If so, in what states? (3) If so, when should I start doing it?

      Here are a few other questions we addressed in this episode.

      • Congress to pass a new sales tax bill? 00:56
      • Is this bill a "new tax" 03:25
      • Why don't states just collect tax from their own citizens? Why to they make remote sellers collect it? 04:15
      • What is the simplest solution for states to deal with multistate sales taxes? 06:31
      • Are the states actually in bad shape as far as tax collection? 08:15
      • Are states targeting smaller FBA sellers? 09:01
      • Is the Congress considering any sales tax bills that will help FBA sellers? 09:25
      • The client journey on sales tax 18:21
      • What's the number one sales tax issue that e-commerce sellers face? 19:10
      • Is clothing taxable in PA? 19:55
      • At what level of sales should I start collecting sales tax? 20:33
      • What are the most important states that an FBA seller should collect sales tax? 21:11
      • Why doesn't Amazon collect tax for fba sellers? 22:35
      • Are FBA sellers better off now for sales tax in Washington state? 23:41
      • If I sell on multiple platforms should I still register in WA? 24:18
      • Do FBA sellers still owe the B&O tax in WA? 25:22
      • Do all states want Amazon to collect tax on behalf of the FBA sellers? 27:10
      • Does Ebay collect sales taxes on behalf of its sellers? 31:01
      • How many states have passed laws requiring Amazon to collect tax on behalf of FBA sellers? 31:15
      • Should FBA sellers just wait until states pass laws requiring Amazon to collect tax for FBA sellers? 32:12

        • Mentioned in the show:

        • Link to WSJ article on the GOP's Internet Tax
        • Avask Accounting
        • Payoneer
        • Accounting Web article: "How State and Local Tax is Affecting Your Clients"
          • 37 min
        • Can a member of an LLC be held personally liable for unpaid sales tax?

          Here's a link to the full video broadcast, if you'd rather watch the video.

          • Can an employee be held personally responsible for unpaid sales tax? 00:35
          • Does an LLC insulate you from sales tax liability? 00:48
          • What if you delegate the tax responsibility to another member of the LLC?03:21
          • Are sales taxes considered trust taxes? 04:10
          • Does personal liability apply even in a case where taxes haven't been collected, or does it just apply with taxes collected and not remitted?05:40
          • Another example of a bookkeeper not paying sales tax on online sales and the business owner was held personally liable. 07:10
          • What are the personal liability laws in other states? 09:15
          • Is there a chart showing what state laws are on personal responsibility that we can download? 09:25
          • Should we place our absolute reliance on these survey charts? 09:45
          • What is the personal liability law in New York? 10:52
          • What if I'm not an active member in the LLC, am I still personally liable? 11:20
          • What is the personal responsibility law regarding state taxes in Florida? 14:10
          25 min
        • It's the Wild Wild West in State Taxes for E-Commerce Businesses Right Now. We've got the latest developments for FBA Sellers in PA, WA, RI, CO, SC.
          It's the Wild Wild West in States Taxes Right Now. Tune in to hear the latest developments in PA and get your answers to the questions listed below.

          Note: There is some nice silence at the beginning of this podcast for 28 seconds. Enjoy the peace :)

          Here's a link to the full video broadcast, if you'd rather watch the video.

          • Audio begins (sorry about that silent part) 00:28
          • What's the latest development for e-commerce sellers?03:21
          • How can states pass these new laws, it seems almost unconstitutional?04:10
          • What is the specifics of the new situation in Pennsylvania?05:40
          • Do FBA sellers still need to file sales tax returns in Pennsylvania06:23
          • Is Pennsylvania a high priority state for FBA sellers from a nexus/registration standpoint?07:25
          • What if we sell on other platforms, like eBay, or Walmart, do we still have to collect tax on those sales?07:59
          • Doesn't Amazon already collect tax in all states?09:15
          • Why doesn't Amazon collect tax for third party sellers everywhere?09:25
          • If a seller has no inventory in Rhode Island, how can they force online sellers to register and collect tax there?11:25
          • Does Massachusetts require Amazon to collect tax for FBA sellers?12:45
          • Why is South Carolina suing Amazon? And what does that mean for FBA sellers?13:15
          • What's the difference in SC versus Washington and Massachusetts?13:45
          • Do I need to turn off sales tax collection in Amazon for sales to Washington and PA because Amazon is automatically collecting and remitting it so that there's no double taxation of my customers?18:45
          • Do FBA sellers still owe the B&O tax in Washington?19:30
          • Should FBA sellers deregister in Washington?19:55
          • Should FBA sellers deregister in Pennsylvania?21:15
          • Are there penalties for sales tax filings if no tax is due?22:05
          • What is the downside of deregistering in a state?22:15
          • What is the risk of owing income tax now in PA?22:59
          • What start date do I choose in South Carolina?24:30
          • Can I do a VDA in South Carolina24:45
          • Will SC refund the taxes to the FBA seller if SC loses its case against Amazon?25:01
          • If I'm not registered right now in WA, should I still register?27:50
          • Do states ask for an FBA seller's Inventory Event Detail Report?29:01
          • How does the VDA program work in WA?30:15
          • How do some FBA sellers justify to themselves registering for sales tax on a going-forward basis without paying the back tax?31:00
          • How does the state of Washington find FBA sellers who aren't collecting sales tax?31:45
          • How do other states find FBA sellers who aren't collecting sales tax?32:02
          • How does the state of Texas find businesses that aren't collecting sales tax?34:45
          • Will Amazon share seller information with other states?36:05
          • Will the state of Washington drop audits of FBA sellers?36:40
          • Do FBM (fulfilled by merchant) sellers have to register in any state other than their own state?38:50
          • Do FBM (fulfilled by merchant) sellers have to register in Colorado or Rhode Island?39:10
          • What if we don't register in Rhode Island?42:01
          • Since when can Colorado42:30
          • What if the Supreme Court upholds Quill in the Wayfair case?43:30
          • What if the Supreme Court rules to overturn Quill in the Wayfair case?44:01
          • Which states have notice and reporting statutes?47:00
          • Will Congress outlaw notice and reporting rules?48:00
          • If Quill is upheld, will FBA sellers be off the hook for sales tax?49:25
          • Why doesn't Amazon collect tax for third party sellers in all states?50:55
          • Do these new laws also apply to electronic downloads and digital goods?53:45
          • Does Texas consider software as a service as a nexus-creating property?54:31
          • What is nexus?55:15
          • Are ebooks, videos, sound recordings taxable?57:10
          • When an FBA seller prospectively
          1 hr 2 min
        • Amazon Agrees to Turn Over Seller Contact Data to the Rhode Island Division of Taxation! What to do?
          Amazon has agreed to turn its FBA sellers' information to the State of Rhode Island. This has created a near-panic. We answer all of the most common fears, and we give you the 3 best options FBA sellers have for dealing with it.
          Here are the questions we address:
          • Specifically, what FBA Seller information has Amazon agreed to turn over to Rhode Island? 03:21
          • If we have no inventory in Rhode Island, are we still subject to these new rules in RI? 04:40
          • How can we have nexus in Rhode Island if Amazon doesn't even have a warehouse there? 05:00
          • Do the new rules in Rhode Island apply just to FBA sellers or to all e-Commerce and other remote sellers? 07:11
          • What are the specific new rules in Rhode Island? 09:18
          • What is a "retail sale facilitator"? 09:41
          • What is a "non-collecting retailer"? 11:11
          • What options does Rhode Island give to the "non-collecting retailer"? 13:58
          • What if our sales levels are less than $20,000 a year in Rhode Island? 14:49
          • What are the 5 specific notifications that an e-Commerce seller is required to make? 17:11
          • Is Rhode Island the biggest sales tax problem state for FBA sellers? 22:58
          • How did we get to the point where Rhode Island can even have a law like this? 23:40
          • How does the Wayfair US Supreme Court case tie in to this? 25:57
          • Isn't Colorado doing this same thing now? 28:54
          • What are the specific thresholds in other states? 30:05
          • Can I avoid this Rhode Island situation if I just get out of FBA altogether? 32:50
          • Can states even tax interstate commerce? I thought that was prohibited in the US Constitution. 33:48
          • Does Amazon collect tax for FBA sellers in Rhode Island? 36:45
          • Does Amazon collect tax for FBA sellers in Washington? 37:28
          • Wouldn't it be much easier if Amazon just collected tax for FBA sellers everywhere? 38:00
          • Isn't the US Congress going to pass a law soon and make this all go away? 40:29
          • Which state seems to be auditing FBA sellers most aggressively? 42:38
          • How much would it cost per transaction to produce these customer notices? 43:49
          • Does a foreign software provider with no physical presence or any of the other typical nexus triggers still need to get registered in Rhode Island? 45:52
          • Is it too expensive for states to audit individuals? 46:42
          • What are the 3 Secrets for dealing with the US sales tax without losing your business? 47:42
          • What options does Peisner recommend in Rhode Island? 53:31
          • If we do get registered in Rhode Island, do we still have to do all these notifications? 55:16
            • 1 hr 3 min
          • Sales Tax for Amazon and Third Party Sellers in the State of Washington Q&A
            The State of Washington has required Amazon to collect tax on behalf of all of its third-party sellers on sales to customers in the state. Amazon has started that process. It makes things significantly more complicated for FBA sellers and other third parties who sell using the Amazon marketplace.
            There have been many questions about this, here are a few that we answer in this podcast.
            • Is Amazon collecting tax in the state of Washington on behalf of third-party (FBA) sellers? 00.50
            • Doesn't Amazon already collect tax everywhere? 01:16
            • Can a third-party seller direct Amazon to collect tax on their behalf? If so, how much does Amazon charge for that tax collection service? 01:38
            • I thought Amazon took the position that tax was not due on sales over the Internet 02:34
            • How much does Amazon charge a third-party seller to collect tax on their behalf? 03:22
            • How much will my sales decrease if I start charging sales tax? 03:38
            • When did Amazon start collecting tax for third-party sellers in Washington? 06:25
            • Can we de-register in Washington now? 06:39
            • What is the process for de-registering for sales tax in a state? 06:51
            • What about the Business and Occupation (B&O) tax in Washington, how does this new process affect it? 7:08
            • What's the process for filling out the sales tax return in Washington? 07:35
            • Do we report all of our sales to Washington even though Amazon collected it? 07:37
            • Do we have to collect sales tax made through other platforms (like WalMart or Ebay) or our own website in Washington? 07:56
            • Does the state of Washington say we can de-register now? 09:45
            • Is sales tax reporting easier and better now in Washington? 10:05
            • Will Washington cancel open sales tax audits of FBA sellers now? 11:17
            • What is the penalty rate in Washington? 11:31
            • How come Congress doesn't get involved and clean up this mess? 12:24
            • Can state auditors still come after FBA sellers in future audits even though Amazon is the tax collector? 14:01
            • How will state auditors find FBA sellers now that Amazon is collecting the tax on their behalf? 16:10
            • If our only activity ever in Washington was through the FBA, and we aren't currently registered, are we still required to register for the sales tax? 19:06
            • What evidence will Washington request to show your activity in their state? 20:50
            • How do the new "notice and reporting" rules fit into this? 21:40
            • What if I just drop FBA altogether, would that solve my tax problems? 21:55
            • Why are states requiring notices to our customers about sales tax? 22:31
            • What are the notice and reporting requirements in WA? 22:46
            • What's the penalty for not complying with the new notice and reporting rules in WA? 24:09
            • Will Washington enforce this harsh penalty? 24:34
            • Why not just ignore the new notice and reporting rules in WA? 24:49
            • What's the most aggressive state as far as sales tax audits of FBA sellers? 25:41
              • 27 min
            • Amazon has agreed to turn in sensitive seller data to the state of Massachusetts! Now what should FBA sellers do?
              Amazon has agreed to turn in sensitive seller data to the state of Massachusetts, and it has created a near panic. As in any panic, people tend to overreact. We have already seen a number of responses that will lead sellers down the wrong path.
              • Specifically, what FBA Seller information has Amazon agreed to turn over to Massachussetts? 00.38
              • Doesn't Amazon already collect tax everywhere? 01:08
              • Does Amazon collect tax on behalf of FBA Sellers in every state? If not, which state does it collect tax even for third party sellers? 01:23
              • Can a third-party seller direct Amazon to collect tax on their behalf? If so, how much does Amazon charge for that tax collection service? 02:25
              • Is Massachusetts the first state to successfully require Amazon to turn over FBA Seller information? 03:22
              • Is Massachusetts' main idea to get people to pay property tax on their inventory? 04:35
              • Is Amazon announcing that they're going to start collecting tax now in Massachusetts on behalf of FBA Sellers? 05:33
              • Is Peisner Johnson listed in the Amazon directory of global solutions providers? 06:59
              • Will Massachusetts share this information with other states? 07:40
              • Will other states follow Massachusetts' lead on this? 08:51
              • Will Massachusetts go back in time against FBA Sellers or just required them to start collecting tax going forward? 11:28
              • Can Massachusetts go all the way back to 2007 if the only activity you have in the state is as an FBA Seller? 13:58
              • When did Amazon open its first warehouse in Massachusetts? 14:14
              • How can Massachusetts do this under the law and get away with it? 17:31
              • Should FBA Sellers panic in Massachusetts? 18:32
              • If we're already registered in Massachusetts, what should we do? 18:53
              • Who is Massachusetts going to go after first? 20:49
              • Is Massachusetts an FBA Seller's biggest sales tax nightmare right now? 22:50
              • What state is auditing FBA Sellers the most aggressively right now? 23:13
                • 25 min

              About The SALTcast

              From the publisher's feed

              Welcome to "The SALTcast," your go-to podcast channel for unraveling the intricate world of sales tax. If you're a business owner seeking clarity on sales tax regulations, or a seasoned CPA…