E-Commerce Tax Optimization Checklist

Navigate sales tax, VAT, and deductions to save 10-15% without compliance headaches.

• Map nexus: Identify states/countries with economic presence (e.g., $100,000 in sales or 200 transactions in many US states; thresholds vary—check per state).
• Automate tracking: Integrate POS/ERP with tax software for real-time rates.
• Audit historical filings: Reclaim overpaid taxes from prior quarters per IRS guidelines.
• Optimize inventory deductions: Write off obsolete or damaged stock as COGS per IRS Pub. 334 (remove from opening inventory if contributed).
• Handle international: Set up OSS/IOSS for EU cross-border sales (de minimis €150 for low-value imports until 2026 phase-out; no specific €10K threshold for non-EU physical goods sellers).
• Review exemptions: Apply resale certificates for B2B wholesale buys.
• Quarterly estimates: Calculate and pay federal/state taxes to avoid penalties.
• 1099 prep: Issue forms for contractors paid >$600 by Jan 31, per IRS Form 1099-NEC requirements.
• Year-end deep dive: Hunt for qualified R&D credits (must meet IRC Sec. 41 criteria for innovative activities) or Section 179 depreciation (up to $2,500,000 max deduction for 2025 qualifying assets).
• Consult pro: Schedule a 30-min review for custom strategies.