Does Seller Ledger track sales tax?
Seller Ledger does track sales tax, but only from the perspective of income tax reporting. This means we track each transaction where sales tax is collected from a customer, as well as any sales tax that is remitted by a marketplace on a seller's behalf. We also allow sellers on non-marketplace sites who are responsible for filing their own sales tax to track the amounts they have collected and may owe.
Examples of how Seller Ledger tracks sales tax
There are a few ways you can see how Seller Ledger deals with sales tax:
- In your accounts from marketplace facilitators (like eBay, Amazon, Walmart and Etsy,) you can expand an order to see sales tax that was collected (and possibly remitted.)
- Under the Reports tab, we have a report called "Sales by State" that shows you the total sales made to each state (though if you are an Etsy seller, we can't provide that information as their API doesn't include ship-to information.) And sales that are remitted by a marketplace are included under "Non-Taxable Sales." But if you have collected sales tax on orders that are not automatically remitted for you (common among Shopify store owners,) they will show up under "Taxable Sales."
- If you do have sales tax that you have collected but isn't automatically remitted for you, we also expose the "Sales Tax Due" liability account near the bottom left of your Dashboard.
What Seller Ledger doesn't do to help with sales tax
Seller Ledger does NOT provide the kind of information designed to help you file sales tax returns with states. In order to do that, we would need to calculate the correct sales tax for each order based on sourcing rules, nexus laws, item taxability, rooftop address accuracy, and taxing authority jurisdiction boundaries. That's beyond the scope of our software. If you need help with that, we recommend using a solution like TaxJar.