Demystifying USA Tax Compliance: Your Guide to Partnering with a Merchant of Record

Do you have an online store? The chances are that you will get customers from many states with multiple jurisdictions in the USA. That means following the requirements of thousands of sales tax authorities defined by state, county, and city governments. But before you even start collecting sales tax and filing annual returns, you must set up your online store based on your company nexus requirements of each states jurisdiction.

Gapp Group will provide consultation and all tax compliance services as the Merchant of Record (MOR):

1. Account Registration

If your company is selling products/services online you will have to be aware when to provide tax registration in each state to be tax compliant and avoid significant penalties. As your online sales/orders volumes increase and you pass each state/jurisdiction thresholds your company is required to complete tax registrations. Gapp Group will easily manage this complex process.

2. Your Company Nexus Requirements

Sales tax nexus is a term used to describe the connection between a business and state or local government that triggers the requirement to collect and remit sales tax. It is the minimum threshold of activity that a business must have in a state before it is obligated to collect and remit sales tax in that state. To become tax compliant, your company’s operation must be evaluated for appropriate nexus requirements.

3. State/Jurisdictional Thresholds

Each of the thousands of tax jurisdictions in the U.S. has a distinct sales tax rate. These rates are based on the sales tax at the district, city, county, and state level. As an online seller, you must follow the requirements of each of these jurisdictions. However, with so many tax authorities, it can be challenging to do so.  As an online Seller of products/services a MOR is responsible for state/jurisdictional sales tax thresholds to be tax compliant.

4. Collection of Sales Tax

Each state/jurisdiction which you have passed the appropriate threshold and has company nexus requires collection of corresponding sales tax. For each online transaction, the appropriate sales tax needs to be provided and approved by the Buyer prior to the transaction approval. Gapp Group will provide the appropriate management of this process.

5. Filing and Remitting Sales Tax Returns

To be tax compliant as an MOR, it is necessary to file sales tax returns based on each state/jurisdiction.  Each state/jurisdiction has different timing filing requirements, such as monthly, quarterly, or annual.

Why is Gapp Group Your Global Choice for Merchant of Record?

Become instantly tax compliant using Gapp Groups proprietary MOR products and services including:

Transaction processing, full tax compliant services, fraud management, online store development and integrations.  Gapp Groups proprietary platform allows for omnichannel marketplaces data collection and custom reporting from B2C/B2B stores (such as Amazon (FBA/FBM), Shopify, Shopify Trade, Big Commerce, WooCommerce, Faire, etc).

For more information about how we can help your business become tax compliant, Contact Us and schedule a call with our knowledgeable team today.