Michael J. Fleming, CMI, is the Founder and President of Sales Tax and More (STM), a consulting and solutions firm specializing in state and local taxes. Before STM, he was the Director at Peisner Johnson, where he became one of the country’s leading authorities on state tax issues, including nexus, drop-shipping, e-commerce, and business licensing. As an industry thought leader, Michael has spoken at national events and is frequently interviewed and quoted by major publications.
Here’s a glimpse of what you’ll learn:
- [9:07] Why Amazon sellers shouldn’t pay sales tax
- [10:42] Michael Fleming talks about the South Dakota v. Wayfair supreme court decision
- [13:58] The intricacies of sales tax nexus
- [19:05] How e-commerce brands can comply with state tax regulations
- [21:38] Advice for determining tax payments
- [30:28] Which states require sales tax payments?
- [36:20] The importance of proactivity when assessing and paying state sales tax
- [40:46] Michael addresses international tax regulations
In this episode…
When it comes to tax payments, Amazon and other online sellers must navigate increasingly complex regulations that vary by state. In the South Dakota v. Wayfair case, the supreme court ruled that states may collect sales tax from sellers without a physical presence in the area. How can you comply with these regulations to avoid penalties?
Although Amazon sellers aren’t required to pay sales taxes, sellers on other platforms storing inventory in Amazon warehouses must comply. The Wayfair decision initiated discrepancies surrounding the sales tax nexus, which requires sellers to register with states to collect and remit sales tax. For instance, each sale processed and shipped in Texas requires a sales tax collection. According to state sales tax expert Michael Fleming, many retailers avoid these payments and face penalties plus interest. Decreasing risk requires registering with the state through VDAs (voluntary disclosure agreements) and conducting regular audits to ensure compliance.
In today’s episode of What The Teck?, Rolando Rosas and Dave Kelly welcome Michael Fleming, the Founder and President of Sales Tax and More, who shares insights about sales tax requirements for e-commerce businesses. Michael explains how to determine tax payments, why sellers should remain proactive when assessing and paying state sales tax, and the intricacies of sales tax nexus.
Resources mentioned in this episode:
- Rolando Rosas on LinkedIn
- Dave Kelly on LinkedIn
- Global Teck Worldwide
- Global Teck Worldwide on Amazon | YouTube
- Circuit Loops
- Michael Fleming on LinkedIn
- Sales Tax and More
- Poly
Sponsor for this episode…
This episode is brought to you by Global Teck Worldwide.
We are a full-service online retailer of professional headsets, webcams, and speaker phones from top manufacturers.
Since 2002, Global Teck Worldwide has provided affordable, high-quality communications equipment and customized telecommunications services to organizations of all sizes.
Our specialists have invested hundreds of hours in technical training, certifications, and seminars to assist customers with purchasing decisions.
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If you are a government agency, small business, or Fortune 500 company, contact us at https://circuitloops.com/contact-us/ to discover a solution that fits your communication needs.
Episode Transcript:
Michael Fleming 0:00
BDA is voluntary disclosure agreement. And as a reward for stepping forward voluntarily, the state is going to limit the look back period. And they’re going to wait penalty. So right away by doing a voluntary disclosure agreement, anything older than that 40 years period, you don’t have to pay any of the back tax penalty or interest. And in that four year period, you don’t pay any of the penalties. So it’s a great tool. But just like any tool, it’s not a one size fits all. And here’s what’s important. There are some software companies out there that say you owe more than $500 You need to do a VDA? Yeah, by the way, our fee to do a VDA, this is the software company is $3,500. My question is why in the world, would you pay anyone $3,500 to remit $500 in tax full. So you gotta be careful of EDA is a great tool. But it’s not a one size fits all tool. We’ve had people come to us that oh, maybe 20 $30,000 in tax and they’re saying, hey, this company wants $100,000 Plus, to do PDAs. And all these states. I don’t know how some of these salespeople get up in the morning. Look in the sales
Rolando Rosas 1:19
mirror. shysters?
Michael Fleming 1:22
Yeah, you got to make sure it actually makes sense. And the basic rule of thumb there is am I going to save enough money by doing this VDA to cover the cost of the VDA? So that’s the rule of thumb that I tell everybody
Intro 1:38
what, what, what what Welcome to the What The Teck? podcast where we talk about business and Office Technology, and put our 20 years of expertise to discussing trends and issues impacting the workplace.
Rolando Rosas 2:01
This podcast is brought to you by Global Teck Worldwide, your Technology Office experts that’s been around for 20 years providing trusted, personalized office IT solutions check them out at amazon.com/teck. That’s amazon.com/teck still paying
Dave Kelly 2:23
for slow, outdated business internet. Why would you do that everything is so expensive and 2022. But listen, you might not realize you can go to circuitloops.com instant quotes to easily compare with what you’re paying for. And finally upgrade that’s right for you. It’s that easy. Go to circuitloops.com COMM
Rolando Rosas 2:43
Hi there, it’s Rolando
Dave Kelly 2:45
and I’m Dave.
Rolando Rosas 2:47
And welcome to What The Teck? where we talk about business and we talk to business influencers as well as tech influencers to get their perspectives on what’s going on in the workplace so that you can grow your business faster. And today, you will get somebody that will also help you avoid costly mistakes to your business. Is that right Dave?
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