California Sales Tax for Online Sellers, Demystified

1. California Sales Tax, Demystified Presented by Mark Faggiano

2. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. Today’s Agenda ● Who has to collect California sales tax ● How to collect sales tax in California ● Step-by-step guide to filing a California sales tax return ● Questions! (use the chat panel on the left)

3. QUICK INTRO: • Passion: using tech to solve problems for small business! • Founded TaxJar in 2013 • Not a CPA or tax professional • Talked to thousands of online sellers, pros, auditors, states • Here to help you make informed decisions

4. CALIFORNIA...

9. “I want California sales tax to go away!” – Average TaxJar Customer

10. WHO COLLECTS CALIFORNIA SALES TAX?

11. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. CHARGE SALES TAX IF YOU HAVE “NEXUS” A presence / connection in California that’s significant enough for you to be required to comply with their sales tax law

19. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. WHAT’S TAXABLE? • Most tangible items are taxable in CA • Common exceptions are clothing and food • Services are mostly not taxable in CA • Are the tides changing? • Shipping, gift wrapping can be taxable

20. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. REGISTERING IN CALIFORNIA • Registering online is easy with one caveat...They will try to persuade you to register with the CA Secretary of State • Out-of-state sole-props & LLCs generally not required to register with the Secretary of State • If you run into problems, call 916-227-6600 for an override

21. HOW TO COLLECT CALIFORNIA SALES TAX

24. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. How to Charge Sales Tax if you DON’T Live in CA ● Charge “destination-based” sales tax ● Charge at the sales rate of your buyer’s “ship to” address

25. HOW TO FILE A CALIFORNIA SALES TAX RETURN

26. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. YOU NEED THESE 4 THINGS TO FILE 1.Gross Sales 2.How much you collected for shipping 3.Taxable sales by district 4.Taxable sales by county

42. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. Helpful resources youtube.com/taxjar For visual learners salestaxcommunity.com Talk with 5,000 other store owners and tax pros! blog.taxjar.com Content just for ecommerce & sales tax

44. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. ❖ 30-day free trial (no credit card required) ❖ Monthly or annual subscriptions ❖ Pricing based on transaction volume • Starts at $19/month for 1k transactions • $19.95 per AutoFile return Get Started…FOR FREE! www.TaxJar.comCopyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

California Sales Tax for Online Sellers, Demystified

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California Sales Tax for Online Sellers, Demystified