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California Sales Tax for Online Sellers, Demystified

California sales tax is tricky. This presentation walks you through:
- Whether or not you need to collect CA sales tax
- How to get registered
- How to collect the right amount of sales tax from your customers
- Step-by-step guide on how to file a California sales tax return

To make California sales tax even simpler, sign up for a 30-day free trial at www.taxjar.com

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California Sales Tax for Online Sellers, Demystified

  1. 1. California Sales Tax, Demystified Presented by Mark Faggiano
  2. 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. 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. 4. CALIFORNIA...
  5. 5. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. Regular Slides
  6. 6. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. Regular Slides
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  8. 8. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. Regular Slides
  9. 9. “I want California sales tax to go away!” – Average TaxJar Customer
  10. 10. WHO COLLECTS CALIFORNIA SALES TAX?
  11. 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
  12. 12. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  13. 13. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  14. 14. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  15. 15. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  16. 16. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  17. 17. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  18. 18. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  19. 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. 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. 21. HOW TO COLLECT CALIFORNIA SALES TAX
  22. 22. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. How to Charge Sales Tax if You Live in CA ● Charge “modified-origin” or “destination” ● We recommend destination
  23. 23. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. Full-Width Image SlideOver 200 sales tax districts in CA!
  24. 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. 25. HOW TO FILE A CALIFORNIA SALES TAX RETURN
  26. 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
  27. 27. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  28. 28. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. Regular Slides
  29. 29. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  30. 30. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  31. 31. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  32. 32. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  33. 33. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  34. 34. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. Regular Slides
  35. 35. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  36. 36. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. Regular Slides
  37. 37. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. Regular Slides
  38. 38. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  39. 39. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. Regular Slides
  40. 40. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. Regular Slides
  41. 41. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
  42. 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
  43. 43. Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. TALK TO US! 855-800-6681
  44. 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.
  45. 45. WE LOVE QUESTIONS! Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

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