What Happens After You Register for Sales Tax?
Getting approved for a sales tax permit is an important milestone, but it's not the last step.
In fact, it's the point where your ongoing sales tax responsibilities begin.
Here's what you can expect after you register.
1. You'll Receive Your Sales Tax Permit
Once your application is approved, the state will issue a sales tax permit (sometimes called a sales tax license or account).
You'll also receive your sales tax account number and instructions for managing your account online. Keep these records in a safe place—you'll use them whenever you file returns or communicate with the state.
2. You'll Be Assigned a Filing Frequency
Every state assigns a filing frequency based on its own rules and, in many cases, your expected sales volume.
Common filing frequencies include:
- Monthly
- Quarterly
- Annually
Some states may change your filing frequency over time as your business grows or your sales change, so don't assume it will stay the same forever.
3. Set Up Sales Tax Collection
Before you collect sales tax, make sure your ecommerce platform is configured correctly.
If you use Shopify, this typically means:
- Adding the state where you've registered under Taxes and Duties
- Confirming your sales tax registration details
- Making sure tax is being collected on orders shipped to that state
- Reviewing any product tax settings if you sell items that may have special tax treatment
If you sell on multiple platforms, check each one individually. For example, Amazon and Etsy often collect and remit sales tax for marketplace sales, while sales made through your own Shopify store may require you to collect the tax yourself.
It's a good idea to place a test order or review a few transactions after making changes to confirm everything is working as expected.
4. File Your Returns on Time
Once you're registered, the state expects you to file sales tax returns according to your assigned schedule.
Even if you didn't collect any sales tax during the filing period, many states still require you to submit a return. These are commonly referred to as zero returns.
Missing a filing deadline can result in penalties or interest, even if no tax was due.
5. Keep Good Records
As your business grows, good recordkeeping becomes increasingly important.
I recommend keeping track of:
- Sales by state
- Tax collected by state
- Marketplace sales versus direct website sales
- Refunds and credits
- Filing confirmations and payment receipts
Having organized records makes filing easier and can save a lot of time if you ever need to answer questions from a state.
Registration Is the Beginning, Not the End
Many ecommerce sellers focus on getting registered and assume the hard part is over.
In reality, successful sales tax compliance is about building a simple, repeatable process:
- Determine where you need to register.
- Register with the appropriate states.
- Set up your store to collect sales tax correctly.
- File your returns on time.
- Review your sales regularly as your business grows.
Once you have that system in place, sales tax becomes much more manageable—and much less stressful.
If you're just getting started, my Sales Tax Starter Guide walks through the basics of economic nexus, marketplace facilitators, registration, and common mistakes in plain English. It's a great place to start if you're trying to make sense of ecommerce sales tax without getting overwhelmed.