What is Streamlined Sales Tax (SST)?

The SST program is an agreement between 24 member states to make sales tax administration simpler and more uniform. The main goal is to reduce the burden of sales tax compliance on businesses, especially remote sellers. 

To achieve this, the SST Governing Board certifies third-party software companies as Certified Service Providers (CSPs). These CSPs integrate with e-commerce platforms and handle the major task involved in sales tax compliance on behalf of businesses.

Key features of the SST program’s standardization include:

  • Uniform definitions for thousands of products and services
  • Simplified tax rate structures
  • Centralized tax returns and remittance processes
  • Standardized audit procedures

Does TaxJar file using SST?

Our sales tax engine is fully equipped to handle the complex calculations and product taxability rules for all 46 states with a state sales tax, including the 24 SST member states. On top of our filing capabilities, we can register for a sales tax permit on behalf of our customers in all 46 states.

However, we have made a deliberate choice not to participate as a Certified Service Provider (CSP) or file through the SST program. The reason is simple: We believe the vendor discount belongs to you, the business owner, and you deserve to keep the filer’s credit you are entitled to. 

Our AutoFile service files directly with each state, ensuring that our customers receive any and all vendor discounts they have earned. We built our automation to protect our customers’ revenue, not take away from it.

What do I need to take to use AutoFile if I am registered with SST?

You must call each state where you are registered with SST to get your sales tax ID for each state. You can find the phone numbers for each state’s tax authority here. If you are registered with SST in Tennessee, Michigan, and Utah, you must make changes to your registrations before TaxJar can file for you:  

  • Tennessee: SST customers need to contact the state to request a change in license type from SST license to SLC license to enroll in AutoFile.  
  • Michigan: For SST customers, the state opens two sales tax accounts–one for intrastate sales (referred to as a sales tax account) and another for interstate sales (referred to as vendor’s use tax account). To enroll in AutoFile, you need to request that one of the two accounts be closed. If you ship your product from a state outside of Michigan, you should request they close the intrastate account. If you ship from Michigan, you should request they close the interstate account. 
  • Utah: SST registrants are assigned a "casual" filing frequency which is not currently supported in TaxJar. To enroll in AutoFile, casual filers will need to ask the state to change to a standard frequency, such as monthly, quarterly, or annual.

TaxJar can support businesses registered with SST in Kentucky, as long as you provide us with your SST account number in the State Tax ID field beginning with "S".

We outline the specific changes users will need to make in the AutoFile enrollment checklists for the above states here. 

When switching from your current Certified Service Provider (CSP), like TaxCloud or Avalara, you might be asked how to handle your SST registrations. We recommend one of two options: 

Option 1: De-register from SST

This means you are still operating your business, but no longer wish to be registered with the SST program. When you do this, your SST will be closed, and you must specify which state registrations to keep open or close. You need to be sure to let the CSP know that you do not want the registrations canceled.

Depending on your provider, you will be able to end your SST registration by logging into your CSP account disenrolling from SST OR by contacting the CSP directly. You should receive a confirmation email of the cancellation which the CSP (or you) can forward to the SST organization to update your SST account. You will also need to provide SST the correct mailing address along with an updated contact name, email and phone number to add to your account with SST to replace the contact information of the CSP who was representing you. 

Option 2: Remove your current CSP

This means you want to keep your SST account open, but remove your current tax provider as your CSP. When you do this, you remain responsible for collecting and remitting taxes in all registered SST states. You might choose this option if you aren’t planning on enrolling in AutoFile in every state where you are registered, and would like to file manually via SST in certain states.