How Frequently Should I File Sales Tax Returns for My Ecommerce Business?

If you’re selling online, collecting sales tax is just one part of the compliance equation. The other—and equally important—part is filing your sales tax returns on time. But how often should you file? The answer depends on where you’re registered and how much tax you collect.

Filing Frequency Varies by State

Each state sets its own rules. Once you register for a sales tax permit, the state assigns your business a filing frequency based on your expected or actual sales volume. The more you collect, the more frequently you’re expected to file.

Here’s a general breakdown:

• Monthly – Typically required for businesses with high sales volume or tax collection.
• Quarterly – Common for mid-sized businesses.
• Annually – Often assigned to smaller businesses or those with minimal activity.

As your business grows, a state may reassign your frequency—so it’s important to check for notices or updates from the Department of Revenue.

Don’t Miss Filing Your Sales Tax Returns, Even if You Owe Nothing

One of the most overlooked requirements is the need to file a zero return when you didn’t collect any sales tax during a period. Many states still require you to file, even if the amount due is $0. Missing this step can result in:

• Late filing penalties
• Interest charges
• Suspension or revocation of your sales tax license

To avoid these issues, having a specialized CPA firm that manages and assists ecommerce sellers—like AVASK US—is highly recommended and beneficial. A trusted firm can ensure compliance, monitor filing schedules, and reduce the risk of penalties through proactive oversight.

Best Practices for Ecommerce Sellers

• Know your states: Track where you’re registered and understand each state’s filing schedule.
• Stay organized: Ensure documentation is ready for each filing cycle.
• Keep clean records: Maintain transaction-level data for audits and amendments.
• File on time—even for $0: Compliance is about consistency, not just collection.

Final Thought

Sales tax filing may seem like a behind-the-scenes task, but it’s critical for keeping your ecommerce business compliant and ready for growth. Filing on time, every time, isn’t just about avoiding penalties—it’s about building a business that can scale without running into legal or financial roadblocks.

If you’re unsure of your obligations, now is the time to review your nexus footprint and confirm your filing status in every state where you operate. Having the right professional support can make all the difference.