Three Ways to Prepare for the Biggest Cyber Monday Ever - Taxify
eCommerce

Three Ways to Prepare for the Biggest Cyber Monday Ever

With the ever-growing preference for shopping online, Cyber Monday has shown continual overall revenue growth and this year is slated as the biggest yet. While retailers in the eCommerce space are already working out how to entice shoppers to spend with them this December 2nd, they could be missing other critical preparations for Cyber Monday.

 

The wake of South Dakota v. Wayfair continues to flow through the U.S., creating new sales tax liability for many eCommerce sellers and quickly putting them out of compliance. We’ve provided the following tips so you can make sure you’re prepared to properly manage the collection and remittance of sales tax, and focus on growing your business:

 

    1. 1. Make sure you’re properly registered and prepared to collect and remit sales tax into all the jurisdictions you plan to sell to:

      The Wayfair decision has changed the landscape of nexus standards for out of state sellers and if you haven’t reassessed your sales tax obligations lately, you may be out of compliance. Depending on your anticipated success this Cyber Monday, the sales that day alone could establish nexus in certain states. Review the economic nexus thresholds to understand where you may have current and/or future sales tax liability.

 

    1. 2. Check if you meet the criteria for Certified Service Provider (CSP) services through the Streamlined Sales Tax Project (SSTP)

      If your registrations are handled, Taxify by Sovos can assist with filing Streamlined Tax Returns as well as supply SST sales tax calculations. Sovos can still help through our enterprise-grade sales tax services if you need more service and meet the criteria for volunteer seller.

 

  1. 3.Scale and fine tune your technology

    Now that you know the jurisdictions where you have liability, understand how you’ll be collecting and remitting tax as well as submitting state filings. eCommerce sellers with a lower volume of sales shipping to a handful of places may be able to handle everything themselves with a little research, including the Sovos Knowledge Center and Taxify by Sovos Blog.

 

However, this can quickly become unmanageable post-Wayfair. As your sales increase and your reach expands, you may want to consider freeing up time to focus on continuing your company’s growth. There are several options out there to assist your company with the burdens of sales tax requirements and we encourage you to explore all of them, including hiring a professional tax resource such as a CPA to advise you on the best selections for sales tax calculation and remittance for you right now.

Whether through our enterprise-grade sales and use tax solutions or Taxify by Sovos designed for smaller eCommerce sellers, Sovos can help resolve your sales tax woes with real-time tax calculations, automated filing tools, and a range of filing managed services to support small, mid-market, and enterprise level businesses. Get in touch and let us know what’s most important to you and your company.

Sales tax compliance is a necessary hassle for every eCommerce retailer. Let Sovos take guesswork and tedium off your plate.

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