Understanding the differences between TaxCloud Tax Reporting and Your Platform's Tax Reporting
When comparing tax reports from your platform (e.g., Shopify, WooCommerce, Quickbooks Online) to those from TaxCloud, it’s important to understand the key differences in how the systems calculate and reports sales tax.
Key Differences
Aspect |
Your Platform |
TaxCloud |
|---|---|---|
| Basis of Reporting | Tax reporting is based on revenue and sales, reflecting gross transactions regardless of fulfillment. | TaxCloud reporting is based on fulfilled orders, aligning with Streamlined Sales Tax (SST) guidelines. Only taxes on shipped or delivered orders are reported. |
| Tax Rate Accuracy | Tax rates are generated by the platform, with less frequent updates compared to TaxCloud. | TaxCloud uses extensive, frequently updated tax tables, audited by SST for accuracy in over 50% of supported jurisdictions. |
| Transaction Timing and Reporting Variances | Initial discrepancies may occur, such as unfulfilled transactions or returns not reflected in reporting. | Discrepancies may occur during initial integration, but unfulfilled transactions typically do not impact tax calculations, as they are not considered in reporting. |
When to Be Concerned
The only scenario that should raise concern is if an unusually high or low tax rate is applied in any state enabled for collection. In such cases, please contact our support team immediately for review and resolution.
Why Choose TaxCloud for Tax Reporting?
TaxCloud’s system is built to ensure compliance and accuracy:
- Adheres to SST requirements.
- Utilizes frequently updated and comprehensive tax rate tables.
- Undergoes regular audits to maintain accuracy and compliance.
Conclusion
While it’s natural to notice differences between platform-reported taxes and TaxCloud’s reporting, these differences are a result of our alignment with SST guidelines and our commitment to accuracy. Understanding these nuances will help you better interpret your tax reports and maintain compliance.
For further questions or support, feel free to reach out to our customer support team.