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What is the Streamlined Sales Tax Project in the U.S.?

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What is the Streamlined Sales Tax Project in the U.S.?

Streamlined Sales Tax (SST) was established in 1999 as a cooperative effort between state and local governments and the business community. Its goal is to make it easier for businesses to pay state sales tax by covering the cost of sales tax software from certified providers.

The Streamlined Member states created the Streamlined Sales Tax Registration System (SSTRS) to provide you a simple and free system to register for sales and use tax in their states. You may register in all Streamlined States or just selected states with one application.

If you do not have the physical location in a Streamlined Member state, the state will compensate the Certified Service Provider for providing the free software and tax filing services to you.

The member states are Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Rhode Island, South Dakota, Utah, Vermont, Washington, West Virginia, Wisconsin, and Wyoming.

Sellers that register through the Streamlined Registration system will be registered in each Streamlined state they select and will be required to collect and remit sales tax in each of those states.

A CSP such as TaxCloud is an agent certified under the Streamlined Sales and Use Tax Agreement to perform all the seller's sales and use tax functions, other than the seller's obligation to remit tax on its own purchases. A CSP is designed to allow a business to outsource most of its sales tax administration responsibilities. CSP services are provided free to sellers in the Streamlined Member states in which the seller does not have the physical location.

Take Taxcloud as an example. After the system integration, the TaxCloud will provide the tax registration, calculation, filing and remittance services for following prices:
  1. 25 Member States (without the physical presence):
    • US$10 service fee per month
    • API usage fee per month, starting from US$20
    Note: if you have the physical presence or economic nexus in the member state, you also need to pay 0.5% of the sales fee in that specific state.

  2. Non-member states:
    • US$100 per state tax ID registration
    • US$10 service fee per month
    • API usage fee per month, starting from US$20
    • Starting from 0.5% of sales fee per month
    • US$30 per sales tax return

Please note the requirements and prices vary among the different CSPs, for more details, please contact Kaizen professional.

Reference:https://www.streamlinedsalestax.org/certified-service-providers/certified-service-providers-about



Disclaimer

All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.

If you wish to obtain more information or assistance, please visit the official website of Kaizen CPA Limited at www.kaizencpa.com or contact us through the following and talk to our professionals:

Email: info@kaizencpa.com
Tel: +852 2341 1444
Mobile : +852 5616 4140, +86 152 1943 4614
WhatsApp/ Line/ WeChat: +852 5616 4140
Skype: kaizencpa

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