Online Sales, Sales Taxes during COVID and Beyond

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January 14, 2021

This year has seen increasing fundamental changes in how consumers shop and how small businesses of all types have improved their online capability for e-sales. Almost every product and service business has the capacity for online sales. Consumers of all demographics have embraced it out of necessity, but also for convenience and time-saving benefits.

However, are your small business commercial customers prepared for the 2020 tax season? Surprise! State and local governments are looking for revenue. Collecting sales taxes from e-sales is a crucial focus for government revenue. If your small business customers are new to e-sales, they need to know a few things to avoid a sales tax trap. Here are some ways you can help them:

  1. Tell them to subscribe and use tax software to calculate sales tax obligations. This software includes all the math to cover all the different state and local requirements. Avoid errors and penalties.
  2. Online sales or e-sales are NOT exempt from sales taxes! Some small business owners may think they are exempt. States and local governments have been closing these loopholes.
  3. Urge them to seek a professional accountant for help or invest in accounting software to help manage their business finances and accurately capture their tax obligations.

Accurately calculating and managing small business tax obligations can be complicated. Manually doing it on their own is error-prone and can result in costly consequences. Offering these basic reminders to your small business customers is a value-added service. They will appreciate and remember your help and extra assistance.

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