Large $ accounting systems already have that. The real problem though is that generally each state requires that a quarterly sales tax return be filed. Automate that.””
There are 3346 counties in the 50 states. There are some cites that also collect sales taxes. One poster here says it adds up to more than 9000 taxing entities.
I seriously doubt that ‘software already exists’ that covers 9000 sales taxing authorities.
Each sale (Income)would have to be isolated for each of those 9000 authorities, and 9000 Liability accounts for the taxes collected. A state like Calif has 58 counties & more cities on top of that. You have to break down your numbers on page 2 of that form. Been there. Done that. My client did almost all of his business in Los Angeles County, but we were careful of any sales out of LA County. Had to be split on the quarterly form & paid.
Have done his bookkeeping for over 48 years & he had to file quarterly forms.
Tell that to a small business who relies on a software & isn’t a bookkeeper.
I can only say-—I am glad that I no longer have ANY clients who have to collect sales taxes.
Hey, I was just thinking:
If you have a brick and mortar in any county in a given state, the only sales taxes that apply in that particular state would be those that apply at your location, right?
IF so, imagine a guy buying a small and cheap location in a low taxed section of every state, and then selling, for a low fee, the address for any small businesses that want to sell in that state. They then base their sales tax on all sales in that state on that location.
I’m imagining in my state of KY, where we have state, county and city sales taxes, some guy buying a $10,000 building in a very poor county, outside of city limits. He could then “rent” a square foot of the space as a KY location to any internet seller small business and all sales in that state could be based on the sales tax for that location.
The owner of the property would include, in the lease, his obligation to send to all of his lessees any notifications he gets regarding tax changes.
Just thinking out loud.