Bonus: Are You Skating on Your Sales Tax Compliance? Simplify Sales Tax with Avalara's Meg Higgins

⛸️ Are You Skating on Your Sales Tax Compliance? Simplify Sales Tax with Avalara's Meg Higgins

This week on the DTC Podcast, we’re diving into the world of tax compliance for ecommerce brands. 

Whether you’re shipping across U.S. state lines or scaling globally, understanding the nuances of taxes is critical to sustainable growth.

We’re joined by Meg Higgins, Senior VP at Avalara, to uncover how Avalara helps merchants simplify tax compliance—making what could be a painful process seamless and scalable.

Compliance isn’t optional. If you want to learn more about staying compliant while scaling your business, this episode is for you.

On with the show: 👇

‍

🛒 The Hidden Complexity of Ecommerce Taxes

As Meg explains, selling online means being “open for business” worldwide, whether you intend to or not. But with that global reach comes a host of compliance challenges.

From calculating sales tax across 14,000 U.S. jurisdictions to managing duties for cross-border shipments, manual methods just don’t cut it anymore.

‍

For example:

• Did you know an unsliced bagel in New York is non-taxable, but slicing it triggers a tax? 🍩
• Or that a Reese’s Cup might be taxed differently than a Twix bar because one contains flour and the other doesn’t? 🍫
• What about the fact that orange juice is taxed more than 300 different ways in the U.S. ALONE? 🍊

These quirky rules may seem amusing, but for ecommerce brands, they can cause costly errors.

‍

🚨 The Risks of Ignoring Compliance

Compliance isn’t just about paying taxes—it’s about avoiding penalties, audits, and losing customer trust.

Meg shares how brands that “skate by” often risk:

• Massive tax bills after an audit.
• Customer dissatisfaction from unexpected fees.
• Inefficiency from manual tax management.

If your business is growing, you’re scaling risk along with revenue. Having a partner who knows how to help you navigate those changes is not a ‘nice to have’; it’s a ‘need to have.’

‍

🛠 How Avalara Makes Compliance Easy

Avalara’s tools reduce the hassle and complexity of tax compliance at every stage. 

From startups to multinational enterprises, they tailor solutions to your needs, including:

• Nexus assessments: Determining where your tax obligations lie. 
• Catalog classification: Ensuring your products are coded correctly to calculate the right taxes.
• Filing services: Handling registrations and remittances across states and countries.

With integrations for platforms like Shopify, BigCommerce, and WooCommerce, Avalara can seamlessly reduce the headaches without compromising accuracy. 📈

‍

🌍 Scaling Globally? Make Sure You’re Covered

Global growth brings unique challenges like customs duties, HS code classification, and real-time e-invoicing in regions like the EU. 

Avalara’s global platform ensures compliance across borders, so you can focus on expanding, not worrying about audits.

Want to learn more about tackling tax compliance head-on? Meg shares insights on cross-border complexities, marketplace tax laws, and the evolving tax landscape.

Listen Here