Sales and Transactions Checker FAQ
Our Sales & Transactions Checker can help you identify where you may have crossed the threshold for economic nexus by showing you:
- Specific states where you exceed economic thresholds
- The amount of revenue you've generated in these states
- The number of transactions you've made in these states
- Next steps if you have new state sales tax requirements
In this article, we share frequently asked questions regarding our Sales & Transactions Checker:
- How do I run the Sales and Transaction Checker?
- What date range does this feature check?
- Does this feature add states to my Dashboard
- Do I need to pay tax on sales prior to reaching the threshold?
- Do I need to register before the laws go into effect?
- If I don't have economic nexus in the state, can I stop collecting in that state?
- Does this exclude exempt or wholesale sales?
- Can the Sales and Transactions Checker count for multiple stores for my business?
- What are sales tax economic nexus laws?
- What are notice & report laws?
How do I run the Sales and Transaction Checker?
- Connect the places where you sell – We offer a simple one-click connection to your shopping carts and marketplaces. Once connected, we'll begin importing your sales data into TaxJar. To compare data against state nexus guidelines, you'll need to import data from the current and prior year.
- Navigate to the Sales and Transaction Checker.
- Click "Run the Checker".
- View your results - See a list of all states where your sales and/or transactions have exceeded that state's economic threshold or notice & report requirement threshold. If you need to register in a new state, TaxJar can handle the registration process. Learn more about our registration service here.
- Note: We recommend running the Sales & Transactions Checker periodically to keep you updated on your compliance requirements.
What date range does this feature check?
Each state has different date ranges they consider and our checker takes those dynamic dates into consideration when looking at your transactions in each state. You can see each state’s date range in the “View Next Steps” link as mentioned above.
Does this feature add states to my Dashboard?
No, it does not. After you have run the State and Transactions Checker, you can click on “View Next Steps” for more information on the economic nexus laws and how to register.
TaxJar can also handle the registration process for you. Learn more about our registration service here
Do I need to pay tax on sales prior to reaching the threshold?
To our understanding, you would only be responsible for collecting on sales made after you reach the threshold for most states.
- You may have to collect for all sales after that event moving forward unless you can prove to the state that you no longer meet requirements to collect.
- You would not be able to avoid collecting in that state every year after you reach the threshold, even if your sales in subsequent years fall below the state's initial threshold.
- We recommend reaching out to the state directly or consulting a sales tax expert for specific advice regarding your business.
Do I need to register before the laws go into effect
Though we can't provide legal advice, to our understanding you aren't required to register until the law goes into effect. For states where the law hasn't gone into effect, this tool gives you the information you need to prepare in advance.
If I don't have economic nexus in a state can I stop collecting sales tax in that state?
Economic nexus is not a replacement for physical presence sales tax nexus laws.
- Economic nexus is simply another way that a seller can have sales tax nexus in a state.
- You are now legally required to comply with sales tax laws in a state if you meet either that state's physical presence requirements or its economic nexus requirements.
Does the Sales & Transactions Checker exclude exempt or wholesale sales?
Our system's Sales & Transactions Checker looks at all eligible sales to determine if your sales met any of these thresholds. Note, wholesale, marketplace, and free orders are subtracted in states where these types of sales do not count towards the thresholds.
Can the Sales and Transactions Checker count for multiple stores for my business?
Yes, we can connect to multiple eCommerce stores such as Amazon, PayPal, Shopify, and other shopping carts. If you use a cart we don’t integrate with, you can easily upload a .csv file of your transactions.