<description>&lt;p&gt;In this episode of the Ecommerce Finance Podcast, Stephen Brown and Mac Wright from Avalara discuss the upcoming changes to sales tax for Shopify Plus users. They delve into the complexities of sales tax calculation, the importance of understanding nexus, and the registration process for compliance.&lt;/p&gt;&lt;p&gt;Mac explains how Avalara's tax engine simplifies the sales tax process for ecommerce businesses, while also addressing the challenges posed by varying tax laws across states and countries. The conversation highlights the need for businesses to stay informed and compliant in an ever-evolving tax landscape.&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;strong&gt;Sound Bites&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;"Sales tax is a complex and annoying world."&lt;/p&gt;&lt;p&gt;"Nexus is your relationship with the state."&lt;/p&gt;&lt;p&gt;"You need to collect tax if you have nexus."&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;strong&gt;Takeaways&lt;/strong&gt;&lt;/p&gt;&lt;ul&gt;&lt;li&gt;Avalara has been a leader in tax technology for over 20 years.&lt;/li&gt;&lt;/ul&gt;&lt;ul&gt;&lt;li&gt;The relationship between Shopify and Avalara is changing with new tax solutions.&lt;/li&gt;&lt;/ul&gt;&lt;ul&gt;&lt;li&gt;Businesses must migrate to new tax engines by April 30, 2025.&lt;/li&gt;&lt;/ul&gt;&lt;ul&gt;&lt;li&gt;Sales tax is complex and requires understanding of nexus and registration.&lt;/li&gt;&lt;/ul&gt;&lt;ul&gt;&lt;li&gt;Nexus determines a business's obligation to collect sales tax.&lt;/li&gt;&lt;/ul&gt;&lt;ul&gt;&lt;li&gt;Collecting sales tax before registering can lead to complications.&lt;/li&gt;&lt;/ul&gt;&lt;ul&gt;&lt;li&gt;Sales tax calculation involves where, who, and what.&lt;/li&gt;&lt;/ul&gt;&lt;ul&gt;&lt;li&gt;Different customers may have different tax obligations.&lt;/li&gt;&lt;/ul&gt;&lt;ul&gt;&lt;li&gt;VAT is a significant consideration for international sales.&lt;/li&gt;&lt;/ul&gt;&lt;ul&gt;&lt;li&gt;Staying compliant with sales tax is crucial to avoid penalties.&lt;/li&gt;&lt;/ul&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;strong&gt;Chapters&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;00:00 Introduction to Sales Tax Changes in Ecommerce&lt;/p&gt;&lt;p&gt;02:09 Avalara's Role and Shopify Plus Integration&lt;/p&gt;&lt;p&gt;06:38 Migration Options for Shopify Plus Users&lt;/p&gt;&lt;p&gt;10:19 Understanding Sales Tax Complexity&lt;/p&gt;&lt;p&gt;11:34 Nexus: The Foundation of Sales Tax Obligations&lt;/p&gt;&lt;p&gt;19:05 The Registration Process for Sales Tax&lt;/p&gt;&lt;p&gt;21:30 Calculating Sales Tax: The Key Factors&lt;/p&gt;&lt;p&gt;28:39 The Importance of Product Taxability&lt;/p&gt;&lt;p&gt;31:26 Navigating VAT and International Sales Tax&lt;/p&gt;&lt;p&gt;37:02 The Future of Sales Tax Compliance&lt;/p&gt;&lt;p&gt;&lt;/p&gt;&lt;p&gt;&lt;strong&gt;Work with LedgerGurus&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;a target="_blank" rel="noopener noreferrer nofollow" href="https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&amp;amp;utm_medium=podcast&amp;amp;utm_campaign=e5"&gt;https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&amp;amp;utm_medium=podcast&amp;amp;utm_campaign=e5&lt;/a&gt;&lt;/p&gt;&lt;p&gt;&lt;strong&gt;Sales Tax Services&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;a target="_blank" rel="noopener noreferrer nofollow" href="https://ledgergurus.com/ecommerce-accounting-services/sales-tax/?utm_source=RSS&amp;amp;utm_medium=podcast&amp;amp;utm_campaign=e5"&gt;https://ledgergurus.com/ecommerce-accounting-services/sales-tax/?utm_source=RSS&amp;amp;utm_medium=podcast&amp;amp;utm_campaign=e5&lt;/a&gt;&lt;/p&gt;</description>

Ecommerce Finance Podcast

Stephen Brown | LedgerGurus

E5: Shopify Plus Sales Tax Changes & Deep Dive into Sales Tax Complexity

JAN 29, 202543 MIN
Ecommerce Finance Podcast

E5: Shopify Plus Sales Tax Changes & Deep Dive into Sales Tax Complexity

JAN 29, 202543 MIN

Description

<p>In this episode of the Ecommerce Finance Podcast, Stephen Brown and Mac Wright from Avalara discuss the upcoming changes to sales tax for Shopify Plus users. They delve into the complexities of sales tax calculation, the importance of understanding nexus, and the registration process for compliance.</p><p>Mac explains how Avalara's tax engine simplifies the sales tax process for ecommerce businesses, while also addressing the challenges posed by varying tax laws across states and countries. The conversation highlights the need for businesses to stay informed and compliant in an ever-evolving tax landscape.</p><p></p><p><strong>Sound Bites</strong></p><p>"Sales tax is a complex and annoying world."</p><p>"Nexus is your relationship with the state."</p><p>"You need to collect tax if you have nexus."</p><p></p><p><strong>Takeaways</strong></p><ul><li>Avalara has been a leader in tax technology for over 20 years.</li></ul><ul><li>The relationship between Shopify and Avalara is changing with new tax solutions.</li></ul><ul><li>Businesses must migrate to new tax engines by April 30, 2025.</li></ul><ul><li>Sales tax is complex and requires understanding of nexus and registration.</li></ul><ul><li>Nexus determines a business's obligation to collect sales tax.</li></ul><ul><li>Collecting sales tax before registering can lead to complications.</li></ul><ul><li>Sales tax calculation involves where, who, and what.</li></ul><ul><li>Different customers may have different tax obligations.</li></ul><ul><li>VAT is a significant consideration for international sales.</li></ul><ul><li>Staying compliant with sales tax is crucial to avoid penalties.</li></ul><p></p><p><strong>Chapters</strong></p><p>00:00 Introduction to Sales Tax Changes in Ecommerce</p><p>02:09 Avalara's Role and Shopify Plus Integration</p><p>06:38 Migration Options for Shopify Plus Users</p><p>10:19 Understanding Sales Tax Complexity</p><p>11:34 Nexus: The Foundation of Sales Tax Obligations</p><p>19:05 The Registration Process for Sales Tax</p><p>21:30 Calculating Sales Tax: The Key Factors</p><p>28:39 The Importance of Product Taxability</p><p>31:26 Navigating VAT and International Sales Tax</p><p>37:02 The Future of Sales Tax Compliance</p><p></p><p><strong>Work with LedgerGurus</strong></p><p><a target="_blank" rel="noopener noreferrer nofollow" href="https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e5">https://ledgergurus.com/ecommerce-accounting-services/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e5</a></p><p><strong>Sales Tax Services</strong></p><p><a target="_blank" rel="noopener noreferrer nofollow" href="https://ledgergurus.com/ecommerce-accounting-services/sales-tax/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e5">https://ledgergurus.com/ecommerce-accounting-services/sales-tax/?utm_source=RSS&amp;utm_medium=podcast&amp;utm_campaign=e5</a></p>