Sales tax 2021 – What is changing and what new trends are emerging as a result

Article written by: Maxi Gampl

Like our society, our economy is in a constant state of change. This affects governments as much as corporate and business owners. Special times like the current pandemic are accelerating digitization processes and strengthening e-commerce over local commerce. We monitor the market and tell you what’s changing and what new trends this means for your business.

E-commerce is becoming increasingly important

In times of social distancing, mandatory masks and the risk of contagion, many Americans are giving up shopping in the city – but not shopping per se. Rather, they continue to consume, just online. Even before the pandemic, e-commerce was growing steadily, but COVID-19 has now accelerated that process. In the third quarter of 2020, e-commerce accounted for nearly 20% of total retail sales in the US.

The big beneficiaries are currently the retailers who are represented online. Those who only operate a local business but do not offer their products online are currently facing major challenges. If it hasn’t been relevant to be represented online recently anyway: now at the latest, retailers should get their online strategy right and discover e-commerce for themselves. E-commerce will continue to grow.

Software for the management of the goods

 

Setting up an online store is easier than ever these days: there are a wide variety of store software that enable even non-professionals to start their own e-commerce business in a short time.

But an online store alone is often not enough. In particular, brick-and-mortar retailers who now want to take off online face challenges when it comes to processing sales. Ideally, an enterprise resource planning system should be established or expanded to handle both online and in-store sales – as well as sales that were generated online, for example, but are collected in-store. Both the employee in the store and the online store must be able to see at any time which products are still in stock and how often.

United Kingdom leaves the European Union

As of January 1, 2021, United Kingdom has left the EU Single Market and Customs Union. With this date, many dealers in the US will need to be registered for VAT in the United Kingdom.

Otherwise, the packages will already be intercepted at customs and can no longer be delivered to buyers in the United Kingdom. If you sell products there, you should check accordingly.

Will platform operators soon be responsible for collecting sales tax?

In the U.S., there are only two states with a general sales tax – namely Florida and Missouri – that do not tax online sales by out-of-state sellers through economic nexus.

2021 will possibly be the year in which various states, such as the aforementioned Florida and Missouri, but also Kansas, will no longer hold sellers or dealers responsible for paying sales tax on third-party sales, but rather the operators of the platforms, such as Amazon or eBay. After all, it is often the platforms that store the sellers’ goods in their own warehouses like Amazon for example, and ship them from there. States such as Washington or California therefore hold the platforms liable for sales tax arrears.

It is expected that other states may soon follow suit with such a regulation.

States hunt down unregistered sellers

Due to the stringent requirements for sellers to be taxed on remote sales, many states have still been lenient in tracking unregistered sellers. However, as three years have now passed since the law went into effect in 2018, states’ patience is wearing thin and they are beginning to track down unregistered out-of-state sellers.

For traders, this means that it is now necessary to catch up on the corresponding registrations and to pay the tax on distance sales with immediate effect in order to be safe from possible penalties.

Virtual events can lead to new taxes

As a new form of commerce took over the market with e-commerce, this naturally had an impact on tax and even today there are regular changes to tax laws to accommodate the progress of e-commerce.

We could see a similar development in the future with virtual events. These have been around for a while, but COVID-19 has made them enormously popular, making them attractive to the tax authorities. We expect the first tax changes here in the near future.

Manufacturers and productions reconsider distribution

Companies in the manufacturing and production of goods have often worked with middlemen who eventually sold their goods in their stores. However, due to the COVID-19 pandemic and the accompanying reduction in face-to-face contact and shopping experiences in the city, manufacturers and productions are now rethinking their distribution activities.

Thus, online sales are becoming more and more attractive in current times, making direct sales an easy way to sell products directly with a larger margin – which in turn has tax relevance for businesses.

Summary

The year 2021 will be dominated significantly by the COVID 19 pandemic and will have an impact on the work of many companies, which will have to rethink previous processes and revise their business models. This, of course, has fiscal implications for businesses and accelerates the growth of e-commerce. Individual states are monitoring these developments and responding with appropriate tax changes.

Noah Wickham

Brand Director

Noah Wickham started in eCommerce a decade ago, reselling on eBay and gradually expanding his knowledge base. Since then, he has worked with a variety of clients over several years, focusing on growth strategies, technology initiatives, product procurement, brand building, and SEO improvements. His expertise covers many areas of eCommerce, with a particular focus on Amazon, Walmart, and Shopify. Noah defines himself as a growth-centric leader and a client success advocate. Outside of work, he enjoys cooking, video games, reading, and chess. Most Saturday nights, you can find him trying a new restaurant or exploring a different venue in his city.

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Shane Keyes

Brand Director

Shane is an Amazon marketing specialist at My Amazon Guy and attended Temple University’s Fox School of Business to pursue a degree in Marketing. 

A self-starter, Shane mastered Amazon’s intricacies through hands-on experience and rigorous self-guided research. Specializing in listing optimization and growth strategies, he excels at boosting BSR through Click-Through Rate (CTR) and Search Engine Optimization (SEO) best practices to drive your brand’s success on Amazon. Shane’s rise at My Amazon Guy underscores his leadership ability and unwavering commitment to achieving a brand’s top priorities.

Beyond work, Shane’s passion lies in Philadelphia sports, with a history of participating in team sports like baseball and rugby.

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Faith Denniston

Brand Director

I’m Faith, an Amazon marketing specialist obsessed with SEO, PPC, CTR, and the alchemy of conversions. With a data-driven approach, I help brands conquer the Amazon marketplace, turning clicks into customers.

When I’m not optimizing listings, you’ll find me in virtual worlds, exploring Final Fantasy XIV and diving into manga. I’m also a paranormal enthusiast, chasing ghostly tales in my spare time. Join me on this journey of digital dominance and otherworldly adventures!

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Roxanne Villanueva

VICE PRESIDENT OF HUMAN RESOURCES

Over 13 years of experience in the Business Process Outsourcing Industry Specializing in Customer Success and Sales for Telco, Tech, Finance and Ecommerce for both Start Up and Fortune 500 companies. 

An Inspirational Leader who loves to be where the action is, enjoys Creating Innovative Solutions to Complex Problems, Developing her People and Driving Engagement.

Interests: Traveling, Music and Spending time with Family

Kevin-Sanderson

Kevin Sanderson

Vice President of Marketing

Kevin Sanderson is the Vice President of Marketing for My Amazon Guy. He graduated from Texas Tech University and has a wide range of experiencew including previously having worked for two Fortune 500 companies and a rapidly growing insurance agency. Kevin has been selling on Amazon since 2015 and is also the founder of Maximizing Ecommerce, a company that hosts popular virtual learning events like the Convert More Clicks Summit and the PPC Mastery Summit. He joined the team at My Amazon Guy after Maximizing Ecommerce by My Amazon Guy and lives in Florida with his beautiful wife and two children.

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Thomas Fitzgibbons

SENIOR ACCOUNT DIRECTOR

Thomas graduated from the University of Missouri – St. Louis (UMSL), receiving a Bachelor’s degree in Business Administration – Marketing and a Certification in Digital Marketing. He started his marketing career in the B2B industry, helping companies focus their internal marketing efforts on Website SEO, Website Content, Digital Advertising, and effective Email Marketing Campaigns. 

 

In 2020, Thomas shifted his career to eCommerce. As a self-starter, he learned the ins and outs of Amazon, Seller Central, and Shopify to help brands and sellers succeed in the digital world. Previously, he worked for an Amazon Marketing Agency as an Account Manager, assisting brands in growing and thriving on Amazon through his management. At MAG, Thomas serves as an Account Director, overseeing an extensive portfolio of 40 brands and managing a successful team of Brand Managers. Thomas provides leadership to his team and execution on high-level strategy for the brands in his portfolio. 

In his free time, Thomas enjoys golf, soccer, music, and taking his dog on hikes around the St. Louis area.

Kristen Lasch

Kristen Lasch

BRAND DIRECTOR

Kristen started her professional work on Amazon in 2018 as a professional seller and project-based Account Manager. She has ample knowledge of both Seller Central and Vendor Central. With a degree in Art & Design, Kristen has a passion for problem-solving and thinking outside the box. She loves to help grow accounts by unraveling underlying issues, organizing catalogs, and providing creative branding ideas. With an extensive background in customer experience, she is able to really dive into the mind of a customer regarding listing optimizations and how to market products appropriately. In her free time, Kristen enjoys spending time with her family and working on growing their own private label account.

I was fortunate to be part of MAG's first batch of its Advertising Internship Program. The timing was perfect for me as I was looking for an opportunity to learn more about Amazon PPC and at the same time to have hands-on training to work on accounts.  

 

When I started my internship, I listed down the things I wanted to learn. And I am happy to say that I've ticked all the boxes! My most favorite was "Optimization Using Bulk Files”. Bulk files and I, we did not get along at first, it was so scary seeing all those data! But I had a great mentor who guided me along the way. He patiently taught me step by step on how to process the data. He was very enthusiastic in answering all of my questions. He supported me until I gained the confidence in uploading my first, second, third (and so on) bulk uploads. 

 

The biggest advantage in working with MAG (and I must say one thing that I always look forward to every week) is its Weekly Ads Training. Every week, we discuss various topics about PPC. Interns/Ads Specialists/Ads Managers, we all share knowledge, information, and updates about PPC. During our discussions, we exchange ideas and feedback. It became an avenue not just to learn a skill, but also to clear any vague or ambiguous PPC topics. 

 

For me, the biggest disadvantage is the work schedule. As an Intern, I have to follow EST timing. The time difference from my location was only 8 hours, but being a morning person, I really struggled to keep myself awake. But if you are a night owl, then this will not be a problem for you.

 

So if you are considering joining the MAG Advertising Internship Program, my advice to you is to take action - APPLY NOW! The knowledge that you will gain and the skill that you will develop from this program will be invaluable. And who knows? From being an Intern, you might be the next one to be promoted as Jr. Ads Specialist! 

Maria Victoria Piedad

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Steven Bruning

IT DIRECTOR

Steven has over eight years of experience in Information Technology and specializes in conceptualizing and implementing data-driven solutions.Steven started his Amazon career in 2019, breaking onto the scene by developing retail arbitrage software tools and gaining an in-depth knowledge of the Amazon Seller Central platform and account management. Outside of work, Steven enjoys DJing, learning and teaching others about personal finance, spreadsheets, and most of all, spending time with his wife playing board games and walking local trails. Steven was a long-distance runner for many years, having run over 1,000 miles and completed a marathon and several half-marathons.
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Jason Mastromatteo

VP of Brand Management

Jason Mastromatteo started his professional Amazon career in 2014 breaking into the Amazon scene selling by means of RA and private labeling. He eventually took his Amazon knowledge and started consulting for other businesses, distributors, and retailers. Jason’s experience and extensive seller central & vendor central knowledge have helped him consistently manage and grow sales through his team at MAG. Jason has interests in music, videography, skateboarding, and is a competitive Magic the Gathering player.

Dustin Fenton

VP of Finance

Dustin Fenton is the VP of Finance at My Amazon Guy. He began his eCommerce career in 2013, graduated with a Bachelors of Science with a Minor in Business Administration in 2018, and began his career at My Amazon Guy in the Fall of 2019. Dustin is a seasoned veteran at My Amazon Guy who has risen through the ranks:
  • Started as an Amazon Specialist
  • Grew to a Successful Brand Manager
  • Became a successful Account Director and through Leadership Grew Others into the Role
  • Promoted to VP of Operations
  • Now Serves as VP of Finance – and Assists the Company in all Areas of Operations
He directs:
  • AR
  • AP
  • Cash Flow
  • Tax Management
  • Employee Benefits Enrollment
  • Budgeting
  • Bookkeeping
  • Strategic Management of Financial Operations
  • M&A
  • Transfer Pricing Agreements
  • Operational Matters in Relation to the Financial Health and Solvency of MAG
In his free time, Dustin enjoys:
  • Traveling
  • Hiking
  • Extreme Weather Chasing
  • Learning and eCommerce Management
  • Retail arbitrage 
  • Spending time with friends and family
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Francisco Valadez

ACCOUNT DIRECTOR

A graduate of Monterrey Tech (ITESM) in Mexico with a Bachelor’s in International Business, Francisco Valadez has spent most of his career as an entrepreneur involved in retail, wholesale, and private label projects. He has led companies from humble beginnings to successful acquisitions. Francisco got his start in eCommerce as part of a shoe company that sells through brick-and-mortar retail, department stores, and its own website. Most recently, Francisco fell down the Amazon rabbit hole while helping a company set up their own Amazon business. From that day on, Francisco has been 100% focused on Amazon retail. He has ample experience in Seller Central, and has proven his understanding of successful strategies to grow a brand’s online retail presence. Outside of work, Francisco loves sports, cooking, reading, listening to vinyl records, and most of all, spending time with his wife and daughters. He coaches in both English and Spanish, and leads the Hispanic team in our agency
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Kristen Dixon

ACCOUNT DIRECTOR

Meet Kristen Dixon, a seasoned Amazon e-commerce expert with nearly 8 years of experience. Kristen is not just a master of the online marketplace; she’s a passionate advocate for helping clients and employees reach their full potential. Her journey in e-commerce isn’t just about transactions; it’s about building relationships, both professionally and personally.

What truly sets Kristen apart is her innate desire to see others succeed. Her clients trust her not just for her e-commerce expertise but for her ability to guide them towards their own success stories. As a mentor to her employees, she nurtures their talents and encourages them to reach new heights. Kristen is not just dedicated to her craft but is equally committed to fostering growth in those she interacts with.

Kristen leads a fulfilling life as a mother of two children and a proud owner of a lively Goldendoodle. Family is her anchor and her “why.” The love she pours into her work is mirrored in her home life. She proudly leads a multifaceted life, where her love for family, sports, and a deep passion for helping others intersect in harmony. Kristen is a true example of how one person can make a lasting impact, both in the digital realm and in the lives of those she touches.

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Nick Nido

CHIEF TECHNOLOGY OFFICER

Holding a masters degree in electronic engineering from MIT with a bachelors in business management, Nick has 15+ years experience in ecommerce business and technology operations. Nick has gained a significant amount of his Amazon experience while launching his own store on Amazon with it being so successful it was later acquired by an conglomerate 3 years later.  

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Steven Pope

FOUNDER

Steven founded My Amazon Guy to help clients grow faster on Amazon. After serving on the corporate side as a marketing manager and eCommerce director for nearly a decade, Steven started teaching businesses how to leverage the largest eCommerce platform and logistics network in the world. The Grand Master of Amazon knowledge, Steven is a thought leader with more than 1500+ videos of free content where he gives away all his trade secrets away. Steven oversees marketing and sales. Mr. Pope is an eagle scout, has an MBA from Western Governor’s University, and a BS from Weber State University. Read what My Amazon Guy employees say it’s like to work for Steven.