Taxes

Getting started with Shopify accounting (the basics)

Most people don’t start a Shopify store to spend hours dissecting financial data, but it doesn’t take long for this to happen. Even if you have accounting experience, e-commerce comes with certain nuances that make the job more complex. Although Shopify offers one of the easiest ways to open and manage an online store, lots of business owners struggle to keep on top of their books. With Shopify, this is mostly due to a clunky flow of financial data.

Understanding Ecommerce Sales Tax

Estimated reading time: 10 minutes 30 seconds. Ecommerce sellers used to have a pretty easy time when it came to sales tax, but those days are gone. In June 2018, a landmark case turned the tide on sales tax collection for good. The Wayfair vs. South Dakota ruling redefined the criteria for business owners eligible to pay sales tax. Prior to this ruling, business owners needed physical presence in a state to be considered eligible to remit sales tax.

Getting started with Amazon accounting

Estimated reading time: 4 minutes 30 seconds. Starting a business is a whirlwind of activity that involves a wide range of different tasks, and presents a unique set of challenges for every startup. Amazon makes it easier to reach paying customers by providing an advanced online marketplace with millions of active shoppers, and offering fulfilment warehousing (FBA) to simplify the logistical side of things. Whilst it is tempting to dive into development and focus on action, some prior research, planning and self-education can make the journey of entrepreneurship much less challenging and significantly reduce your chances of failure.

What is sales tax?

Estimated reading time: 4 minutes. This article is a guest post from our good friends at MuseMinded. They have teamed up with The Tax Butler to offer a free sales tax starter kit for US-based Amazon sellers. This is the first blog in a three-part series which looks at the basics of sales tax for ecommerce sellers and where you can find help. The next two parts cover: Sales tax strategies for Amazon FBA sellers in the United States.

Sales tax strategies for Amazon sellers

Estimated reading time: 6 minutes. This article is a guest post from our good friends at MuseMinded. They have teamed up with The Tax Butler to offer a free sales tax starter kit for US-based Amazon sellers. As an Amazon seller in the United States, complying with sales tax can become an extremely complex burden if it isn’t managed properly. This is due to the fact that each state has different tax rates, filing frequencies and other requirements.

Options for filing sales tax returns

Estimated reading time: 5 minutes 30 seconds. This article is a guest post from our good friends at MuseMinded - The Amazon Accounting Specialists. They have teamed up with The Tax Butler to offer a free sales tax starter kit for US-based Amazon sellers. As the third and final article in our three-part series, this blog post takes a look at filing frequencies, and some of the ways that you can file your sales tax returns.

Amazon sales tax guide

Estimated reading time: 18 minutes 30 seconds. In 2020, the US is estimated to have spent over $370 million on retail ecommerce sales. By the end of 2021, this figure is expected to surpass $400 million. When Amazon was founded, the internet was relatively new and sales tax was something cemented in bricks and mortar. People shopped on streets - not online - so a physical address was enough for states to keep tabs on businesses.

Amazon income tax guide (United States)

Estimated reading time: 8 minutes. Most Amazon sellers bring in around $1000-5000/month in revenue, with around 6% making upwards of $250,000. Even after the costs and fees hidden behind those figures, that’s some substantial income. “Income” doesn’t just mean “salary”. A one-off garage sale worth $200 is technically income. It is simply money received, usually in exchange for goods and/or services. Selling on Amazon very much qualifies as an income source.

eBay VAT guide

Estimated reading time: 17 minutes. When you sell online to a global market, you’re opening up your business to a world full of consumers with disposable income. You’ll also become subject to meeting tax thresholds in multiple economies with different rules (sigh). And with ecommerce being the lucrative beast that it is, tax authorities in those multiple economies are onto you. But don’t close up shop just yet. In this guide, we explore all things VAT in the UK and Europe - what it means for eBay sellers like you, and how to get started.

Where to find an ecommerce accountant

Estimated reading time: 5 minutes. Introducing the ecommerce accountant directory. Find your new ecommerce accountant here. It’s a complicated beast, accounting, and as an ecommerce store owner, you’ll have had first-hand experience. Ecommerce has grown at a tremendous rate, and with this growth comes a new wave of ecommerce experts. A2X works closely with a fantastic network of ecommerce accountants from all over the world, who are highly experienced with A2X and more importantly, understand the accounting complexities experienced by ecommerce sellers.

eBay income tax guide

Estimated reading time: 8 minutes 30 seconds. For online sellers, eBay is a little different to other ecommerce platforms. You could use eBay to get rid of old stuff around the house here and there, like a garage sale. Or, you could use it to run a multi-million dollar, profitable business. With such scope for revenue, eBay sellers may be confused as to where they land on the tax eligibility scale.

eBay sales tax guide

Estimated reading time: 19 minutes 30 seconds. Ah, sales tax. The ultimate Pandora’s box has come for ecommerce sellers. In 2019, US online retail sales of physical goods reached an astronomical $343 billion. By 2024, they are forecast to reach $476 billion. Physical presence in a state used to be a parameter for tax, but times have changed. With billions of dollars floating in the digital space, governments everywhere, not just in the US, have needed to change tack.

The Ultimate Shopify Sales Tax Guide [Full Resource]

Estimated reading time: 13 minutes 30 seconds. In the mid-1990s at the dawn of ecommerce, online sales weren’t worth enough to garner the attention of tax authorities. Sales tax was something paid by businesses with a fixed, physical address, and back then, most had that. This isn’t the case today. Since Shopify’s inception in 2004, US ecommerce sales revenue has skyrocketed from $75 billion to $787.9 billion in 2020. In the last decade alone, the industry has multiplied itself almost five times over.

Amazon Taxes: A Beginners Guide To Doing It Right

Estimated reading time: 15 minutes. It’s something few of us learn at school, and yet the tangled knot of taxes is something just about everyone on the globe deals with at some stage in their lives. Income tax is probably familiar, but you might associate this with salaried employment. Unfortunately, it’s not just those with an employer that should be paying income tax. In fact, ‘income’ could be as little as a few hundred dollars made in a garage sale and this technically, should be declared and taxed.

Walmart Sales Tax - How To Do It The Right Way

Estimated reading time: 7 minutes. Sales tax is one of the greatest challenges for ecommerce sellers in the US. Why? Because compliance requirements differ across the states, and the consequences of getting it wrong can be quite significant. In 2018, the South Dakota vs. Wayfair Inc. ruling changed the tax landscape for remote sellers for good. With this decision came a wave of state-specific rules and definitions of tax nexus, leaving many sellers - small and large - confused about their obligations.

How to Collect VAT Through Amazon UK Seller Central

Estimated reading time: 7 minutes. This guide was correct at the time it was written. With impending potential Brexit changes and ongoing ecommerce tax developments, it is best to get the most up-to-date information from the official government channels or an accountant. A top priority for any established Amazon seller is charging and collecting sales tax. Why? Because if you’re unable to meet your sales tax obligations, the responsibility and repercussions rest solely on your shoulders – not with Amazon.

UK Ecommerce Accounting Software for Amazon FBA and Shopify

Running an ecommerce business in the UK comes with a unique set of challenges and opportunities. Regardless of whether you’re selling on Amazon, Shopify or another digital avenue, you need to have accurate financials in order to make sound business decisions. Many digital entrepreneurs (and their bookkeepers) manually enter the sales or payout data into their accounting system. While it may seem like a suitable solution in the beginning, this can result in more work and a wide range of issues such as reporting errors, difficulties with comparing the performance of different channels and time periods, and challenges when it comes to selling your business down the line.

Shopify Accounting Day at San Francisco Shopify Merchant Lounge

Calling all Shopify Merchants in the San Francisco Bay area. On Thursday, March 19th, Shopify has organised a day dedicated entirely to help Shopify Merchants with their accounting. Shopify accounting office hours will be held from 10 am - 4.00 pm and a Shopify accounting meetup will take place from 6.00 pm. Both events will be in the Shopify Merchant Lounge. Shopify Accounting Office Hours Join accounting and tax experts Wayne Richard and Jermey Allen who are available for one on one appointments in the Shopify Merchant Lounge.

A2X in London, Singapore and Toronto

The A2X team is currently spread out far and wide for a very busy end of year. Whether you are in London, Singapore or Toronto, there will be an event nearby. Giving you plenty of opportunity to meet the team and check out firsthand the new Shopify integration and the new VAT features for Amazon accounting with A2X.  A2X in London After a successful QuickBooks Connect 2019 in San Jose.

Sales Tax Nexus Trends – What Amazon Sellers Need to Know

The past year has been unprecedented in terms of sales tax law changes that impact online sellers. The whirlwind began after the U.S. Supreme Court handed down its decision in South Dakota v. Wayfair in June 2018. The Wayfair decision is all about nexus – the level of connection between your business and the state that obligates you to register and collect sales tax. The Supreme Court ruled that physical presence is no longer the main requirement for creating nexus, that it can also be created when a seller’s sales into a state exceed certain economic thresholds.

Peace of Mind with A2X and TaxJar

Estimated reading time: 5 minutes. If you’re getting serious about your Amazon ecommerce business, you’ll already have yourself dedicated cloud-based accounting software, like Xero or QuickBooks. Hopefully, you’ll also have integrated A2X so you have timely, usable sales data and reporting at your fingertips. The next thing you need? Sales-tax software. The cold hard truth is that if you’re selling via Amazon FBA, at some point you’re going to be paying sales tax – and that’s when your accounting can get complicated, especially if you’re selling in the US.

How the US Trade Tariffs Will Affect Amazon FBA Sellers [Part Two]

Estimated reading time: 10 minutes. An Interview with the Owner of a US-Based Manufacturer and Online Retailer with Karen Brady  Part One here. This company uses both CNC components produced in the US, and imported components designed in the US and manufactured in Chinese factories. The final retail products are assembled in the US and sold on from their website. Following on from the interview with ExportX’s Paul Grey, I continue my investigation into the mechanics of import/export and how the US-China Trade Wars have impacted his and other companies.

The Definitive Guide to Amazon 1099K Reports for Amazon Sellers

Estimated reading time: 7 minutes. The Amazon 1099k (or sometimes just called the 1099 or “ten-ninety-nine") is the one report we get asked about so often at A2X; ‘How do I match the 1099K to my sales, how do I know where Amazon gets their numbers, what does this all mean and why does it never easily balances back to your business management accounting?'. Now, while we will cover off on all those questions in this blog and the supporting material, this task is something that is really not necessary.

A2X Asks UK Accountants: How Can Amazon Sellers Prepare for the UK’s MTD?

Estimated reading time: 8 minutes 30 seconds. MTD, or Making Tax Digital, impacts all aspects of the way Amazon sellers in the UK account for VAT to the HMRC. Despite the initial and rather urgent push for sellers to start their transition to compliant digital systems early, many delayed. This means that many UK Amazon sellers are still trying to catch up and understand this shift to MTD. When I first planned to write this blog, I never imagined that I’d actually get to be in the UK as it approached this transition.

Sales Tax: Understand Your Obligations and Make a Plan

Estimated reading time: 5 minutes. Sales tax for ecommerce sellers is relatively new and continually evolving. When bricks-and-mortar stores were the only retailers, knowing where to pay your taxes and to whom was straight forward. You had a physical location which gave you “nexus” in a particular state; a link strong enough that you needed to pay tax, and that was pretty much the end of the story. With millions of dollars moving into the cloud space and no physical locations to pin them to, governments faced two problems:

Taxes, Thresholds, and Penalties: Understanding Changing Tax Law in Rhode Island

Estimated reading time: 4 minutes. This article was written and published in 2018. Ecommerce tax regulations are constantly changing and location-dependent, so for the most up-to-date information, always consult your accountant or the official government websites for your state. We also have a complete guide on collecting Amazon sales tax here with appropriate links and advice. As more and more international businesses start to sell through Amazon, understanding the ins and outs of US tax law becomes increasingly important.

Sales Tax, Historic Data, and Multiple Channels: Understanding Taxes in Pennsylvania

Estimated reading time: 3 minutes. This post was written and published in 2018. Tax obligations for ecommerce sellers is constantly evolving, so for the most up-to-date information on tax legislation, please consult the official governing body websites for your location. Our blog How-To Guide: Collecting Amazon Sales Tax is also a good source of additional information and relevant sources. Like many states, Pennsylvania is in the process of introducing new tax legislation aimed at ecommerce retailers.

New taxes, new issues - understanding Washington’s Marketplace Facilitator Tax

If you’re an Amazon seller with sales in the state of Washington, you may have noticed some changes to the way your sales tax appears in your A2X reports. This is the result of the new ‘Marketplace Facilitator Tax’ that was introduced in January this year. While this specific tax only applies to sales in Washington State, other states are introducing similar taxes of their own, which will affect Amazon sellers in the future.

Prosper Show 2018 Amazon Accounting Panel Recap

Estimated reading time: 9 minutes 30 seconds. The Prosper Show is an annual conference for Amazon marketplace sellers, and the ecosystem of businesses and applications that serve them. During the 2018 Prosper Show held in Las Vegas on March 13-14, 2018, A2X hosted a live interview panel with four leading Amazon marketplace accountants: Scott Scharf from Catching Clouds Melanie Shabangu from Avask Accounting Jeremiah Kovacs from MuseMinded Cyndi Thomason from Bookskeep During the live panel, audience members had the chance to ask the Amazon accounting experts a range of questions, prompting discussions about the future of Amazon accounting.

Registrations, Regulations, and Complications: Tax Planning for International Amazon Sellers in the US

Estimated reading time: 5 minutes 30 seconds. If you’re an international seller wanting to break into the US market, an ecommerce giant like Amazon might appear to be a straightforward solution. With a 45% US ecommerce market share, a little bit of time spent creating an online store on Amazon and managing fulfilment certainly looks worth the investment. What many international sellers don’t realise, however, is that the story doesn’t end (or even begin) there.

A2X and Amazon Australia Accounting with Xero and Quickbooks Online

Amazon Australia launched Amazon.com.au at the start of December and hit, what has been reported as, a record first day of sales in any Amazon marketplace. A2X is excited to report that we are able to support Amazon Australia sellers to thrive on the new platform and nail their ecommerce accounting. If you’re an Australian business selling on Amazon in Australia, or an international firm opening an Amazon.com.au selling account, A2X will give you the reliable, accurate accounting of sales and fees you need to reconcile your Amazon settlements in Xero and Quickbooks Online.

Taking Eagle & Fox to the world on Amazon

Eagle & Fox had big plans for their business, but their accounting was holding them back. _Here’s how A2X helped the Amazon retailers simplify their VAT reporting, speed up their accounting and grow their business. _ Fergus and Emma Macdonald run Eagle & Fox, a creative online retailer based in the old sea port of Leith, Scotland. They merged their two brands, Kilt Society and The Tartan Blanket Co, into one dream company – a smart and efficient move.

MTC Amazon Sales Tax Amnesty - August 17 to October 17, 2017

We received word from our friends at the PROSPER Show that the MTC (Multi-State Tax Commission) has announced a Sales Tax Amnesty program for August 17th to October 17th 2017. This is huge news for for Amazon sellers on Amazon.com, you can submit a Voluntary Disclosure to get registered for tax collection immediately, and importantly avoid back taxes, interest and penalties. What States are participating in the program? The program covers these states: