Shopify - Can you please update your tax table to accurately calculate taxes for jurisdictions that fall within the same zip code, but have different tax rates.
I have several customers that are in the same US Zip Code. That Zip Code has 2-3 different cities that fall within the 5 Digit Zip Code, however, each city is being charged the same Tax. In reality, each city within the Zip Code has a different tax rate that varies from 7.5% to 8.9%. Customer who should be charged 7.5% and are being charged 8.9% are complaining and asking for that amount to be refunded. This causes a number of issues for us including a poor customer experience and headaches accurately collecting, reporting and paying sales taxes each month.
I believe the fix for this is to use tax rates based on Geolocation street addresses and or Zip Code plus the four-digit specification code, that separate cities, therefore allowing for accurate taxation.
Many thanks in advance and comments and solutions are always welcome.
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In case anyone is interested, here is what I learned from a conversation with the Corporate NEXUS group for the state of NJ.
Since we do not have NEXUS in NJ, we are not responsible for collecting sales tax.
Separate to Sales Tax, since we will derive part of our revenue from the State of NJ from consumers who buy from us, we must register and pay a Corporate Business Tax to the state of NJ. This tax is based on our annual revenue for sales to consumers in NJ.
I plan to research this by calling each state individually to inquire on their specific requirements. Or, I could just hire an Accountant who specializes in this and save myself a lot of time.
S Corporation- MINIMUM TAX (Tax Year 2007 – Forward):
The minimum tax is assessed based on New Jersey Gross Receipts:
Less than $100,000
$375.00$100,000 or more but less than $250,000
$250,000 or more but less than $500,000
$500,000 or more but less than $1,000,000
$1,000,000 or more
The minimum tax is assessed based on the New Jersey Gross Receipts (Schedule A-GR) as follows: provided however that for a taxpayer that is a member of an affiliated or controlled group (as per sections 1504 or 1563 of the Internal Revenue Code of 1986) which has a total payroll of $5,000,000 or more for the return period, including periods beginning on or after January 1, 2012, the minimum tax shall be $2,000.
Total payroll refers to the total payroll of the affiliated group rather than total New Jersey payroll of a single corporation. Taxpayers that are members of an affiliated or controlled group must submit a schedule of payroll per member and a copy of the taxpayer’s federal affiliations schedule, Form 851, with the return. Refer to Schedule A-GR for the determination of New Jersey gross receipts.
Tax periods of less than 12 months are subject to the higher minimum tax if the prorated total payroll exceeds $416,667 per month.
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There doesn't seem to be a tax professional who agrees on one answer, so I would like hear what the general consensus is on our Tax scenario.
We are a new drop shipping company headquartered in Alpharetta, GA. We only have Nexus in the State of Georgia.
We resell through several manufacturers and distributors who are all located in the US. These states include Georgia, New Jersey, California and Illinois.
We’ve provided each of our manufacturers and distributors with a State of Georgia resale certificate.
We plan to ship to every state in the US including Washington DC and Puerto Rico.
Because we have Nexus in Georgia, we plan to collect tax from customers in Georgia. What other States do we have to collect taxes in and what States do we need to register with so that we can be in compliance with those States to collect tax?
We plan to use TaxJar...
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Hello - I'm looking for an app that can integrate custom quote creation into our site that we are still in Test Mode. We have items ranging from $50 up to $15,000 and some customers will need to get these orders approved through their managers which requires them to have to print out formal estimates/quotes/proposals so they can review these at their meetings.
I'm looking for something that is more formal than just the shopping cart printout and can be sent via email. I don't need the option of providing the customer with the option of requesting a quote online.
Can anyone help me with this?
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