What is Streamlined Sales Tax?

Streamlined Sales Tax (SST) is an organization of state governments, taxpayers, and technology providers that aims to make sales tax compliance more simple. The participating state governments drafted the Streamlined Sales and Use Tax Agreement which establishes the requirements that states must adopt to become a member and maintain their membership. Some examples include uniform definitions, standardized sourcing, and simplified filing.

The Agreement also explains the role technology providers can play in simplifying sales tax. Through the SST program, sellers are able to work with Certified Service Providers to pay taxes, which reduces costs and provides significant audit protection.

The SST program has 24 participating states:

• Arkansas

• Georgia

• Indiana

• Iowa

• Kansas

• Kentucky

• Michigan

• Minnesota

• Nebraska

• Nevada

• New Jersey

• North Carolina

• North Dakota

• Ohio

• Oklahoma

• Rhode Island

• South Dakota

• Tennessee

• Utah

• Vermont

• Washington

• West Virginia

• Wisconsin

• Wyoming

What is a Certified Service Provider?

A Certified Service Provider (CSP) is a tax compliance technology provider certified under the SSUTA to calculate, file, and pay taxes on the seller's behalf in SST member states. CSPs provide their services to sellers free of charge and are compensated by the states where they file and remit taxes on behalf of their clients.

Some of the services provided by CSPs include:

• Integrating the CSP's software with the seller's systems
• Calculating tax on all relevant sales transactions by applying the correct rate and product taxability rule
• Maintaining a proper record of each transaction
• Preparing and filing the required tax returns
• Remitting the tax to each of the SSUTA member states
• Resolving any notices or audits by any SSUTA member states
• Protecting the privacy of the tax information it obtains

What is a CSP-compensated seller?

CSP-compensated sellers, previously called volunteer sellers, are taxpayers that use CSPs to calculate and remit sales and use tax on their behalf in any of the SST member states. To be eligible for a CSP in a state, a seller can't have physical nexus or a considerable amount of people or property, defined as more than $50,000 of inventory or payroll, in the state.

Eligibility is determined on a state-by-state basis, so having a place of business or significant inventory in one SST member state would not disqualify you from being eligible for a CSP in other states.

What are the advantages of using a CSP?

Under SST requirements, CSPs essentially become the taxpayer of record for any transaction in a member state. When a CSP-compensated seller is audited, the CSP is the primary point of contact, taking on audit liability for any inaccuracies that they have caused. This can be very beneficial for tax departments, saving time as well as money.