Sales Tax Fundamentals
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Schedule Changes to License Type and Frequency Settings in TaxJar
byOctober 15, 2021
It’s almost that time of year again. For many companies, Black Friday and Cyber Monday come with a boom in consumer spending as more customers embrace online shopping across various channels.
For instance, during the onset of the pandemic last year, 68% of US consumers said they would likely buy essential goods online after the health threats of Covid-19 subside. Also, shoppers spent 20% more during Cyber Week in 2020 than they did in 2019, according to Adobe.
However, such a sudden surge in online selling may come as both a gift and a curse for online sellers. Did you know that your filing frequencies (or how often you remit sales tax) may change as your online sales increase?
As your business grows, states may require you to file sales tax returns more regularly by changing your state-assigned filing frequency (for example, from quarterly to monthly).
Keeping track of changing requirements isn’t easy, considering each state has specific due dates and filing requirements. When you think of that plus keeping up with rate changes across states in which you sell into, things can get, well…complicated.
Something else to keep in mind is that states may assess penalties and interest on late filings, which for some companies means unnecessary out-of-pocket fees for missing filing dates.
That’s why we’re here to help you get ahead of these changes.
Now, you’ll have an easy way to schedule changes to your license type and frequency settings in TaxJar. Why is this important?
Our state settings scheduler gives you the flexibility to update your state-assigned frequency as soon as the state notifies you. That means, not having to wait till the day the change becomes effective and you can submit changes that affect your AutoFile enrollment avoiding accidentally being late
This scheduling flexibility also applies to changes in registration license type, for example when moving from a standard seller’s use tax license to a simplified seller’s use tax license.
TaxJar’s state settings scheduler – updating frequency
TaxJar’s state settings scheduler – updating license type
Rather than having to remember (yet another thing) to do during the busy holiday season, you can proactively schedule changes as soon as you know about them.
To learn more, check out this KB article for additional details.