Perhaps you never really gave much thought to clothing and sales tax as you were planning your online boutique. It's definitely one of the not-so-fun parts of starting up your own e-business. Nonetheless, you can't just ignore it and wait for it to fade away. That won't ever happen.
When you talk of this particular type of tax, it's a chaotic, complex system you're dealing with that seems to keep changing without warning. But then again, as an online entrepreneur, you need to open your eyes to reality and face the music.
If you'd like to implement efficient tax management for your store, here are some important truths you must accept:
1. You can only handle so much info on tax.
You don't only have to educate yourself on the actual operations of your online store and a wide range of Internet marketing strategies, but you'll have to deal with tax too! Do you have any idea how taxing it can be to study the different sales tax rules and regulations of 45 different states along with those outside of the US? Certainly, it's doable. But all the time and effort you put into it may not be worthwhile.
2. Even sales tax experts can fall behind.
There aren't only varying clothing and sales tax details across the nation and around the world, but you'll also have to take into consideration the incessant changes being implemented. Modifications in policies, shifting rates, confusing tax holidays, fluctuating exemptions… all these can be difficult to keep up with even if you're a sales tax expert.
3. Tax-exempt clothing and apparel often change.
If you're in the clothing business, you'll have to be wary about frequently changing product taxability. Which items are tax-exempt? At times, you'll be surprised to find out that those which used to be exempted are no longer exempted because of adjustment in jurisdiction. Every now and then, you might come across news on different regulations which will also affect these exemptions.
4. It's difficult to keep up with sales tax holidays.
Are you aware of just how often sales tax holidays change too? There are various reasons that go into these breaks, such as a way to support local merchants and strengthen the business arena in a particular area. Such tax holidays may be fleeting. They can happen anywhere. Indeed they may catch you off guard if you're not on top of it all.
5. You need to be content-rich in product taxability too.
As an online entrepreneur, it's essential not just to work on being content-rich in your website. You also need to ensure your wealth of knowledge when it comes to product taxability. After all, you don't want to be running into trouble at any time.
What if you add and remove products from time to time? How will you handle taxes when your business keeps growing and expanding? Manufacturers, distributors, and retailers in clothing and apparel are all affected by the 5 eye-openers described above.
Good thing if you're using 3dcart as your shopping cart provider, there's a way to manage taxes efficiently without losing sleep or going crazy.