Sales Tax in eCommerce: Why Software Alone Won't Keep You Compliant - Lahari Neelapareddy
Lahari Neelapareddy, CPA and founder of Tax Hero, explains why sales tax compliance matters for every eCommerce store, from economic nexus to audits, and why you still need humans, not just apps.
Sales Tax in eCommerce: Why Software Alone Won't Keep You Compliant
In this episode of the eCom Ops Podcast, Norbert talks with Lahari Neelapareddy, CPA and Founder of Tax Hero, about one of the most dreaded parts of running an online store: sales tax.
Lahari explains why compliance is a legal obligation for every seller shipping to the US, why small stores are just as exposed as large ones, and how economic nexus, changing state rules and Shopify alerts can quietly create big liabilities. She also compares the US state-by-state system with Europe's OSS model, and shares a real client story where a "zero dollar" filing problem led to notices, penalties and a payment plan with the state of California.
Lahari Neelapareddy is the CEO and founder of Tax Hero, a full-service sales tax solution provider for eCommerce businesses. Combining technology with expert human oversight, Tax Hero ensures that businesses of all sizes remain compliant across every state, allowing owners to focus on growth instead of sales tax worries.
Tax Hero is a full-service sales tax solution provider designed to take the burden of compliance off the shoulders of eCommerce businesses. Specializing in Shopify stores and CPG industries, Tax Hero offers an all-inclusive service that handles every aspect of sales tax management—from configuration to filing. With a single, transparent price package, businesses of all sizes can benefit from Tax Hero’s expertise without worrying about hidden fees or complicated DIY setups.
- What you'll learn:
- Why sales tax compliance is a legal and cash flow issue, not just paperwork
- What physical nexus and economic nexus mean, and why 200 orders in a state can trigger registration
- Why food and beverage brands and small stores are not exempt
- Why you should not blindly follow Shopify's "you need to register" alerts
- Why Streamlined Sales Tax (SST) registration can open you up to state income and franchise tax
- How the US state-by-state approach differs from the EU OSS system
- Why you need a human expert on top of your tax software
- How to use a sales tax cash flow forecast so you don't spend money you owe to the states
- This episode is sponsored by B2Bware the B2B commerce platform that replaces your email orders, your manual data entry, and your integration mess with one system that runs on your ERP. Check them out at b2bware.com.