Last week we covered the concepts and requirements of sales tax for ecommerce sellers. This week, we look at the compliance processes and the biggest challenges sellers face.
Once you have nexus in a state, you need to register, configure your platform to collect the correct tax rates, file returns on schedule, and remit the collected tax. The challenge is that each state has different rules, different filing frequencies, and different thresholds. The administrative burden is real — and the penalties for non-compliance are significant. Tools like Zamp, TaxJar, and Avalara exist to automate most of this. If you’re selling in multiple states, using one of these is not optional — it’s essential.
