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Ask The Experts: Lizzy of TaxJar

By Last updated on: February 26, 2019

TaxJar is the leading technology solution for busy eCommerce sellers to manage sales tax, and is trusted by more than 15,000 businesses. They are proud to help businesses and developers spend less time on sales tax and more time growing the businesses they love.

Lizzy Greenburg, Marketing
Lizzy Greenburg is the CMO at TaxJar. She’s passionate about TaxJar’s mission of making e-commerce easier for everyone by solving sales tax.  With a background of selling for 15+ years in e-commerce, Lizzy has been filing her own sales tax returns in Texas and California. She knows first-hand the headaches of e-commerce sales tax compliance.

We have seen so much made of SD v Wayfair this year, is there any difference on the impact for large vs small sellers?

With the recent Supreme Court decision of South Dakota vs. Wayfair, it’s fair to say that almost every online seller is impacted, no matter what size business they run. The introduction of economic nexus is a new concept for many sellers that adds a bit more complexity to managing sales tax for an eCommerce business.

Understanding what economic nexus means is the first step in interpreting these rulings for any eCommerce seller. TaxJar is committed to providing education through our Sales Tax Blog to explain what these new laws mean in simple, easy-to-understand language.

Once a seller understands economic nexus, the next step is to determine where their business may have liabilities. We know this can be a challenge, so we’ve introduced a completely free tool to help you figure that out.

The TaxJar Sales & Transactions Checker can help anyone, no matter what size business they run, find out where they may have economic nexus in minutes.

For sellers with a large footprint across the united states, economic nexus might have little to no impact on their sales tax requirements. They may already be collecting, and may already have tax teams in place in order to manage these changes easily. 

For sellers with small teams and or individual business owners, this change may require a larger investment of time and resources in order to understand the changes thoroughly and prepare a plan for compliance.

Regardless, with technology that exists today like TaxJar, we hope to make it easy and simple to handle sales tax for any size seller. Large or small, we aim to make eCommerce easier for everyone. Because sales tax is now a cost of doing business in the eCommerce space, we’re committed to solving this for all businesses, no matter what the size.

Does this have an impact on taxation of shipping costs?

A majority of states consider shipping charges to be a vital part of the transaction, and therefore consider shipping charges taxable. But a little less than 1/3 of states, though, do not considers hipping charges taxable as long as they are separately stated on the invoice or receipt.

The Supreme Court changes don’t have any impact on whether or not shipping on a particular sale is required; however, when you’re calculating how much gross revenue you’re making in a state, it’s important to know whether to include S&H into that amount.

As with any definition relating to sales tax, it’s up to the states to determine if S&H is included in the ‘gross revenue’ amount that applies to the state thresholds for economic nexus. At this time, most states are considering this to be part of their threshold amount; however if you have a question for your state, it’s best to consult with your department of revenue and/or request a letter ruling to confirm.

For online sellers that have never dealt with online taxation, what resources would you recommend?

If you’re new to sales tax or online taxation, we recommend the TaxJar Sales Tax Blog. This resource covers ~900 posts relating to everything you need to know about sales tax.

Some helpful starting points are:

Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he then graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur and other publications discussing parcel auditing, shipping, e-commerce and more. Learn more at www.refundretriever.com or call (800) 441-8085 for more information.

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