Common Sales Tax Mistakes Small Sellers Make
Most sales tax trouble comes from a few avoidable errors. Here they are.
Ignoring nexus until it is a problem
Many sellers assume they only owe tax where they are based, then discover they crossed thresholds elsewhere. By then they may owe back tax. Watching your exposure early avoids this entirely.
Using a single flat rate
Charging one rate to everyone is simple but often wrong, because rates vary by the customer's address. A flat rate quietly mischarges a large share of orders.
Treating all products the same
Not every product is taxed the same way, and some are exempt in certain states. Applying one taxability rule to a varied catalog leads to errors that add up.
Missing filing deadlines
Registering to collect is only half the job. Each state has filing deadlines, and missing them brings penalties. Keeping the dates in view is as important as charging the right rate.
- Watch nexus before it becomes back tax
- A single flat rate mischarges many orders
- Product taxability varies by state
- Track and meet every filing deadline
Julien Jimenez
Julien Jimenez is an independent software builder based in Paris. He designs, ships, and operates focused SaaS products for small businesses and independent professionals. Read the full author page.
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