TaxCloud x Bonanza: Understanding Sales Tax and the Need for Automation

Most US states and several countries worldwide have added Marketplace Facilitator Provisions to their sales tax laws. Bonanza is considered a Marketplace Facilitator, and is therefore responsible for calculating, collecting, and remitting tax for all sales made to buyers located in specific states, regardless of the seller's location.

Sales Tax on Bonanza: https://support.bonanza.com/hc/en-us/articles/360029034131-Sales-Tax-Bonanza

As a seller, we understand that sales tax can be confusing when you’re having to account for different state rules and taxes for different types of items. Compliance with sales tax laws is essential for businesses to avoid penalties and ensure smooth operations.

As online sales continue to grow, understanding and managing sales tax obligations has become increasingly significant for sellers, impacting pricing strategies, profit margins, and overall customer experience.

Over the past many years, Bonanza has partnered with TaxCloud to provide you with peace of mind when it comes to calculating and collecting sales tax from your Bonanza sales!

Bonanza will collect and remit sales tax on behalf of sellers for all applicable transactions where the buyer is located in the states listed above (regardless of the seller's location).

Our partner, TaxCloud, will calculate the tax amount based on the type of product, the buyer’s location, and the location from which the item is shipped. Bonanza will then remit the sales tax to those states through our partnership with TaxCloud.