The first thing you should do is determine whether or not your business is subject to the new tax.
In Oregon, for example, there is currently no statewide sales tax, but some cities and counties do have local sales taxes. If a statewide sales tax has been added, you’ll need to check the details of the new tax law to understand which products or services are taxable and what the tax rate is.
Once you have determined whether or not your business is subject to the new tax, you must update your accounting system to ensure that the sales tax is properly calculated and collected on taxable sales. You’ll need to choose a sales tax software solution to automate the process. It is possible to calculate sales tax returns manually, but it is not cost-effective. Consider Sales Tax DataLINK. Call us at 479-715-4275 to learn more.
What Is Next?
You may need to obtain a sales tax permit or register for a sales tax account with the state tax agency. States set their own rules and regulations for sales tax, so your state will have its own unique process if it adds a state sales tax.
It is also important to communicate the new tax to your customers and update your pricing accordingly. You may need to adjust your pricing strategy to account for the additional cost of the sales tax, and you should make sure your customers are aware of the change to avoid any confusion or surprises at the time of purchase.
If you have sales outside your state, you may already have sales tax responsibilities. Since the Wayfair decision, states have had the right to require sales tax compliance of remote sellers. If you have not been collecting sales tax from out-of-state customers, you may need to do some catching up.
Sales Tax DataLINK can help. Call 479-715-4275 to discuss your options.