TaxConnex® is excited to announce the launch of a new client portal, Client Connexion. Client Connexion will provide a streamlined client experience and enhanced data security through an intuitive user interface and encrypted portal.
1 min read
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5 tips for managing U.S. sales tax from overseas
If you’re a company outside of the United States and you look to start selling into America, congratulations – the U.S. offers you a huge new market. It also offers complex sales tax obligations you may not know about.
Topics: sales tax nexus sales tax compliance economic nexus registrations
4 min read
Cancelling a sales tax registration
Last time, we looked at trailing nexus and a few reasons you might want to cancel your sales tax registration with a state.
Topics: sales tax nexus sales tax compliance economic nexus registrations
3 min read
What’s trailing nexus? And why should you cancel your sales tax registration?
You know all about reaching sales tax nexus: selling enough or having a physical presence in a tax jurisdiction sufficient to create a connection with that jurisdiction and create an obligation for you to collect and remit sales tax.
Topics: sales tax nexus sales tax compliance economic nexus
2 min read
10 steps to manage your sales tax obligations
Sales tax is complex for businesses of all sizes. If you are a business with customers in multiple states, your scope and risk grows in accordance with the number of states and the sales tax complexities in those states. Sales tax obligations begin with whether you have nexus in a state or other locality. Nexus today largely stems from two main factors – a physical presence or economic presence. Once nexus has been established you must determine if your products/services are taxable. If you have nexus AND your products/services are taxable, then you likely need to register and comply.
Topics: sales tax compliance sales tax sales tax filing
2 min read
Loopholes and other odd sales tax rules, part 2
Last time we looked at a sample of the strange sales tax laws regarding food, including a sliced bagel in New York. If only that was the only complex category concerning sales tax.
Topics: sales tax compliance sales tax taxability
3 min read
Loopholes and other odd sales tax rules, part 1
Sales tax can be complicated, with rules that frequently change and disparate application across the nation’s thousands and thousands of tax jurisdictions.
Topics: sales tax compliance sales tax taxability
4 min read
5 Reasons to Outsource Your Sales Tax Compliance Process
As you are likely aware, managing your sales and use tax obligations is not a small task. Ensuring you have the right people and processes in place is key to maintaining compliance and not putting yourself or your business at risk.
Topics: sales tax compliance sales tax CPA
3 min read
The latest on the NOMAD states
A state has not added a statewide sales tax since Richard Nixon was in the White House. Vermont was the last to due so in 1969. There are five remaining states with no state level sales tax: New Hampshire, Oregon, Montana, Alaska and Delaware – often referred to as the NOMAD states.
Topics: sales tax compliance sales tax economic nexus
7 min read
5 Questions to Ask Yourself Before Distributing Sales Tax Obligations to Other Team Members After Losing a Key Employee
Losing an important member of your finance team can leave a big hole in many business processes, especially if most of your accounting functions are managed in-house. But what happens when you lose the person managing your sales tax obligations? For most businesses in this scenario – there are three options:
Topics: sales tax compliance sales tax
4 min read
Charging sales tax based on an IP address
When your customers shop with you online, they provide a physical billing or shipping address. Whether they know it or not, they also give you another bit of location information: an Internet Protocol (IP) address.
Topics: sales tax compliance sales tax software economic nexus
3 min read
Alaska moves toward statewide sales tax
Alaska Gov. Mike Dunleavy is reportedly preparing to introduce a sales tax as part of a long-term budget plan for the state.
Topics: sales tax compliance sales tax sales tax news
2 min read
Selling Into the U.S. - Understanding How Customer Location Impacts Which Sales Tax Rates and Rules You Apply
The United States has possibly the world’s most complex sales tax regime. This is because each state sets its own sales tax rules, and states often take widely varying approaches. As a result, each state has a different tax framework, with varying rules around everything from tax liability and tax rates to exemption categories and reporting requirements. On top of this, some local area tax jurisdictions also have powers over some aspects of taxation and can set different rules for their area.
Topics: sales tax compliance sales tax economic nexus
1 min read
TaxConnex Wins ClearlyRated's 2023 Best of Accounting Award for Service Excellence
We are excited to announce that we have won the Best of Accounting Awardfor providing superior service to their clients. ClearlyRated's Best of Accounting® Award winners have proven to be industry leaders in service quality based entirely on ratings provided by their clients.On average, clients of 2023 Best of Accounting winners are more than 1.7 times as likely to be satisfied than those who work with non-winning firms. TaxConnex received satisfaction scores of 9 or 10 out of 10 from 90.8% of their clients, significantly higher than the industry’s average of 50% in 2022.
Topics: sales tax compliance sales tax CPA Now it's all on us
4 min read
Why are there so many due dates for sales tax?
If you refer to “filing taxes” most people think of income tax with its annual filing requirement. State sales tax is another beast altogether, with a dizzying number of deadlines – and, potentially, serious consequences for missing one.
Topics: sales tax compliance sales tax sales tax news
5 min read
What’s new in sales tax?
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates so far this year.
Topics: sales tax taxability sales tax news economic nexus
2 min read
Managing sales tax: Are businesses satisfied with the additional effort?
Our third annual survey of financial professionals across accounting, manufacturing, construction, software and technology, retail/eCommerce, telecom and others showed that many industries face sales tax challenges and that financial leaders continue to lean on internal resources to get the job done.
Topics: sales tax compliance sales tax
4 min read
5 Tips to Minimize Risk Associated with Sales Tax Audits
If you are a business that must collect and remit sales tax, an audit is probably one of your biggest fears. In fact, our annual survey of financial professionals on sales tax trends has ranked sales tax audits as a top worry for the third year in a row. Yet, when asked if they’ve seen audits increased, they’ve continually said the amount of audits they’ve seen has remained the same (66%). If the number of audits has remained the same, why is it a top worry?
Topics: sales tax compliance sales tax sales tax audits
3 min read
Sales tax challenges of software and tech companies
The 2018 Supreme Court Wayfair decision gave us a bright line standard for determining sales tax nexus: Generate a set amount of revenue in a state in a set amount of time and your company has to collect and remit the applicable sales tax. Seems clear. However, companies still must deal with the ambiguous physical presence standards as well as the varying taxability rules from state to state.
Topics: sales tax compliance sales tax software SaaS
5 min read
Six tips to respond to a sales tax audit
You just got notice of a sales tax audit. What now?
Topics: sales tax compliance sales tax sales tax audits
4 min read
The latest on a national sales tax
Everything old is new again – and that goes for ideas of a national sales tax. H.R.25 of the 118th Congress, the GOP’s “Fair Tax Act of 2023,” is the latest attempt.
The embattled bill, now in committee, was introduced early this year to replace the federal income tax. What’s in the bill? What’s at stake for the revenue of states that already have their own sales tax? And why should eCommerce companies pay attention.
Topics: sales tax compliance sales tax sales tax news
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TaxConnex® Receives World Class NPS Score for Third Year in a Row
We recently completed our third annual client survey and are excited to announce that we have received a world class NPS score of 91! This is the third year that our NPS score has been labeled as world class, but this was our highest score yet, almost 10 points over previous years.
Topics: sales tax compliance sales tax Now it's all on us
6 min read
Get to Know TaxConnex: Partner Q&A Series - Jackie Breiter
Looking to find out more about TaxConnex? What better way than hearing from our founders and partners? Learn from the best by hearing from the ones that built TaxConnex. Over the last few months, we've been highlighting the Partners of TaxConnex. Finally, we have our Chief Operating Officer, Jackie Breiter!
Topics: sales tax Now it's all on us
5 min read
How to address growing skills gap for sales tax compliance
The use of internal resources still seems the way to go for most companies struggling to meet their sales tax filing and remittance obligations. But for how long?
Topics: sales tax compliance sales tax CPA
4 min read
3 Sales tax pitfalls facing manufacturers and wholesalers
Many manufacturers, wholesalers, and distributors believe they have minimal sales tax obligations due to the likelihood of sales tax-exempt transactions. However, there are numerous pitfalls to be aware of.
Topics: sales tax taxability economic nexus manufacturing
2 min read
New year, new sales tax doings
So far this year, multiple states have introduced new exemptions including some on necessities and at least one proposed tax credit on a politically charged kitchen appliance.
Topics: sales tax taxability sales tax news economic nexus
6 min read
Getting digital with sales tax in 2023
At least three states opened this year with proposals to revamp taxes concerning digital advertising and data.
Topics: sales tax taxability sales tax news economic nexus
3 min read
Retailers/ecommerce companies face special sales tax challenges
Online retailers and eCommerce companies have been the focal point of taxing jurisdictions and their updated nexus laws for years.
Our third annual survey of financial professionals revealed a sales tax storm in many industries. Financial leaders continue to lean on internal resources while wrestling with the current economy, inflation and a tight job market.
Retail/eCommerce respondents to our survey reported challenges such as audits, timely filing of sales tax returns and charging the correct sales tax.
Topics: sales tax retail economic nexus ecommerce
5 min read
The importance of Documenting Your Sales Tax Compliance Process
Sales tax compliance is riddled with risk. Failure to comply with the applicable sales tax rules can have a devastating effect on a business, but they’re often overlooked because they’re considered “pass-through” as the business is responsible for collecting the applicable taxes which pass through the business and are subsequently turned over or paid to the states. While these pass-through taxes are not meant to create a financial burden on a business, failure to comply can create significant risk and managing the obligations can be a burden to the team who has to manage them.
Topics: sales tax compliance sales tax
3 min read
Kentucky now taxes a range of services
“Services” are generally not subject to sales tax while tangible personal property generally is subject to sales tax. This over simplification can get you sideways in various states as there are lots of exceptions to these general rules. Kentucky is the latest in terms of taxing specific services.
Topics: sales tax compliance sales tax taxability economic nexus
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Ready for a Successful 2023
We are excited to share in that we closed out 2022 breaking our annual new business revenue goal! We saw a 40% increase in new sales as compared to the prior year and are set for a great 2023.
Topics: sales tax sales tax news Now it's all on us
3 min read
The Big 3 Barriers to Managing Sales Tax
Think you’re the only one worried about sales tax compliance? According to our third annual Sales Tax Market Survey you’re not.
Topics: sales tax compliance sales tax CPA
3 min read
Love is in the air... and so is sales tax
Candy, flowers, diamonds, romantic dinners out or a movie snuggled on the couch: The year’s biggest day for dates looms again, and here’s an update on sales tax considerations for Valentine’s Day.
Topics: sales tax retail ecommerce
3 min read
Update on local jurisdictions and sales tax
States aren’t the only ones who can complicate your life with sales tax: Local governments want to play their part, too. Cities, counties and towns nationwide – which have almost all seen an increase in their sales tax revenues in recent years – constantly tinker with their own sales taxes. The states and local jurisdictions have been the beneficiary of economic nexus over the past four years.
Topics: sales tax sales tax news economic nexus
3 min read
5 Key Findings from TaxConnex’s 3rd Annual Sales Tax Trends Report
Findings from the third annual Sales Tax Market Survey indicate that a perfect storm is brewing for financial leaders in the new year. Companies still struggle to navigate workforce shortages and retention of internal expertise, yet they remain highly dependent on in-house resources to perform many of the vital functions related to sales tax. Their resources are stretched thin, and bandwidth is reported to be the top barrier for success.
Topics: sales tax compliance sales tax sales tax news
3 min read
Wayfair still key in nexus judgments
Two recent state courts’ determinations – one good for the seller, one not – show the continuing reach of Wayfair almost five years after the landmark Supreme Court decision regarding economic nexus.
Topics: sales tax south dakota vs. wayfair economic nexus
4 min read
Get to Know TaxConnex: Partner Q&A Series - Jeff Meigs
Looking to find out more about TaxConnex? What better way than hearing from our founders and partners? Learn from the best by hearing from the ones that built TaxConnex. Over the last couple months, we've been highlighting the Partners of TaxConnex. Next up, our Consulting Practice Leader, Jeff Meigs!
Topics: sales tax Now it's all on us
5 min read
What was new in December for state sales and use taxes
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax compliance sales tax sales tax news
3 min read
The latest on sales tax on shipping charges (part 2)
Shipping is indispensable to eCommerce yet sales tax on it remains a mishmash of regulations across the states.
In our previous blog, we looked at how exemptions, the taxability of the item being shipped and selling into tax-free states affect sales tax on shipping. What other factors change your shipping/sales tax obligations and in what states?
Topics: sales tax retail ecommerce
4 min read
What to know about responsible party laws
We hear a lot about “sales tax obligations,” but who exactly in your company is “obligated?”
You are, at least in many states.
Topics: sales tax compliance sales tax CPA
2 min read
The latest on sales tax on shipping charges (part 1)
Online sales could not exist without shipping, and the charges associated with shipping are subject to sales tax in many states.
Question is, who has to pay that sales tax these days, and where?
Topics: sales tax retail ecommerce
3 min read
Sales tax and economic nexus in Puerto Rico
Studies show that some 1.4 million people in the Commonwealth of Puerto Rico (more than a third of population) do their shopping online, with annual online purchases in the U.S. territory now at $458 million. The size of the average online transaction in Puerto Rico has almost tripled in the past six years.
It’s a fair bet, then, that sooner or later you’re going to be selling online into Puerto Rico, which has a sales tax. Every U.S. state with a sales tax has economic nexus thresholds – does Puerto Rico?
Topics: sales tax economic nexus ecommerce
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3rd Annual Sales Tax Market Research Survey Results Released!
We have completed our third annual survey of top financial professionals on how they are managing sales tax. This year’s results reveal a perfect storm is brewing for financial leaders who continue to depend on internal resources even though expertise and bandwidth is lacking while companies struggle with the current economic climate, rising inflation, and a tight job market.
Topics: sales tax compliance sales tax CPA
4 min read
The Sales Tax Requirements of Selling Into Canada
U.S. sales tax is confusing enough. What if you begin selling into a foreign country? You’ve heard it before that US sales & use tax laws are some of the most confusing, but how are things done with our neighbor to the north? Especially for the northern states, having customers or clients in Canada can happen easily, but do the same rules apply? Is it easier to understand?
Topics: sales tax compliance
4 min read
Economic nexus overview - all states with sales tax now active
Next summer will mark five years since the Supreme Court ignited economic sales tax nexus with the South Dakota v. Wayfair, Inc et aldecision. Many businesses are still trying to figure out how to manage the resulting obligations, but one thing’s clear:
Now every state with a sales tax has economic nexus.
Topics: sales tax sales tax news economic nexus
6 min read
What happened in sales tax in 2022
New sources of tax revenue, old ones robust but sputtering in spots, tax holidays as political tools amid inflation: It’s been a year of new trends in sales tax.
Topics: sales tax compliance sales tax sales tax news
4 min read
What is a sales tax exemption?
Sales and use tax nexus is defined as a connection between a person or entity and a taxing jurisdiction. Sales tax nexus is the basis for all your sales tax decisions because without sales tax nexus you have no further obligation to a state.
Topics: sales tax compliance sales tax
5 min read
Sales and Use Tax for Leasing – Not as simple as you may think
This was previously published in Monitor Daily – check out the article now!
Topics: sales tax taxability use tax leasing
4 min read
How Does Shopify Handle Sales Tax? | TaxConnex
Shopify is one of the most popular e-commerce platforms. The e-commerce website builder claims that more than 1.7 million businesses have made over $200 billion in sales with the Ottawa, Ontario-based company’s websites.
Free trials, tiered plans, 24/7 support, thousands of app integrations, unlimited storage and bandwidth… Truly does sound like whatForbes called an “all-in-one platform [with] everything you need to launch an online store.”
What about sales tax? How does Shopify handle sales tax?
Topics: sales tax retail ecommerce
4 min read
Get to Know TaxConnex: Partner Q&A Series - Brian Greer
Looking to find out more about TaxConnex? What better way than hearing from our founders and partners? Learn from the best by hearing from the ones that built TaxConnex. Over the next few months, we will be highlighting the Partners of TaxConnex. Next up, our CRO, Brian Greer.
Topics: sales tax Now it's all on us
2 min read
Cyber Monday again breaks records
How big were online sales on Monday, Nov. 28?
Topics: sales tax retail ecommerce
4 min read
Managing Transactional Taxes as Your Business Grows Globally
You may think that selling outside the U.S. spares you the complexities and headaches of sales tax thresholds. And you’d be right – except that in many countries you’d instead run into value-added tax (VAT) on transactions.
Topics: sales tax compliance sales tax sales tax news
4 min read
Calculation and Compliance: The Importance of Having Both in Your Sales Tax Process (But Not Necessarily By the Same Provider)
Understanding the various aspects of your sales tax process is critical to keep your business on solid ground as it relates to sales tax and minimize your risk.
Topics: sales tax compliance sales tax sales tax calculation
5 min read
What was new in October for state sales and use taxes
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax compliance sales tax sales tax news
5 min read
Top Tips to Prepare for an eCommerce Audit
*as previously posted on the Retailist – check out the article there - https://retailistmag.com/top-tips-to-prepare-for-an-ecommerce-audit/
Data shows that the likelihood of your business being audited is low, but that likelihood has been increasing in recent years. If you sell online across multiple states and have met economic thresholds or have a physical presence, you definitely don’t want to take that chance.
Topics: sales tax compliance sales tax audits ecommerce
2 min read
Accounting firms and sales and use tax advising: Perfect together?
In our blog last week, we looked at how sales and use tax advisory services might be a good new field for CPAs and accounting firms. How can they go about making the move?
Topics: sales tax compliance sales tax CPA
3 min read
Don’t let Black Friday blind you to sales tax obligations
Holiday shopping season is here again – and eCommerce looks to be bigger than ever. But retailers looking forward to perhaps record online sales have to remember how to comply with widely divergent sales tax regulations.
Topics: sales tax compliance sales tax retail ecommerce
2 min read
Can accounting firms move into sales tax advising?
Many certified public accountants (CPAs), enrolled agents and other tax preparers and professionals that run accounting and tax preparation firms are constantly looking for new advisory avenues to service clients.
Topics: sales tax compliance sales tax CPA
1 min read
TaxConnex® Proud to Exhibit at Thomson Reuters SYNERGY 2022 Conference
Alpharetta, GA., November 11, 2022 - TaxConnex®, a technology-enabled sales tax compliance outsourcing provider, shared that they are exhibiting at Thomson Reuters SYNERGY 2022 Conference for Corporate Professionals November 13-16.
Topics: sales tax Now it's all on us events
5 min read
Get to Know TaxConnex: Partner Q&A Series - Robert Dumas
Looking to find out more about TaxConnex? What better way than hearing from our Founders and partners? Learn from the best by hearing from the ones that built TaxConnex. Over the next few months, we will be highlighting the Partners of TaxConnex. First up, our Founder and CEO, Robert Dumas.
Topics: sales tax Now it's all on us
2 min read
Sales tax and crypto: Latest developments
Most of us are familiar with the scrutiny placed on cryptocurrencies by the IRS. The next federal 1040 has an even longer set of probing questions about crypto transactions.
Topics: sales tax compliance sales tax taxability
2 min read
Digital advertising tax blocked
A new tax law in Maryland seemed ready to rattle every company that sold digital products in the U.S. But a court has now invalidated the Maryland Digital Advertising Tax.
Topics: sales tax taxability sales tax news
4 min read
Sales tax concerns if you sell through multiple channels
This article was originally featured in the Retailist on October 3rd, 2022.
Topics: sales tax nexus sales tax compliance economic nexus
3 min read
Construction Sales Tax Complexities | TaxConnex
If you’re a construction contractor – especially if you’re engaged in contracts in different states – you have to evaluate your sales tax responsibilities in each state where you have customers.
Topics: sales tax nexus sales tax taxability
2 min read
Tricky items for sales tax (Part 3)
Our Halloween-month look at tricky items concludes with a natural: candy.
Topics: sales tax compliance sales tax taxability
4 min read
What was new in September for state sales and use taxes
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax compliance sales tax sales tax news
2 min read
Understanding Sales Tax Filing Periods & Frequency by State
Sales tax, unlike other types of taxes, has many deadlines, not once or twice a year, but often every month and it doesn’t fall on the same day for every business, or state.
Topics: sales tax compliance sales tax
3 min read
Tricky items for sales tax (Part 2)
Our Halloween-month look at tricky items for sales tax continues here with a few items it’s hard to live without…
Topics: sales tax compliance sales tax taxability
3 min read
Tricky items for sales tax
We’re fond of saying that nothing’s ever easy in sales tax. And here we’ll kick off our run toward Halloween with a look at one of the newest and trickiest areas of sales tax: electric vehicle chargers and charging.
Topics: sales tax compliance sales tax taxability
3 min read
In telecom case, fault is with the company – not the third-party provider
A proposed penalty from the Federal Communication Commission shows the danger of a hire-and-forget attitude toward a third-party for tax compliance.
Topics: telecom tax economic nexus
4 min read
M&A negotiations and sales tax liability
It’s a common scenario: A company has decided to sell, then due diligence turns up a $2 million risk in past sales tax obligations and compliance. The buyer looks to secure against the risk via escrow – on the conservative, high side – and requires the seller to mitigate the risk.
Topics: sales tax compliance sales tax
4 min read
How to manage sales tax obligations
So you’ve done the smart thing and determined that your company has sales tax obligations in various states. That’s a great first step. Now you must collect, file, and remit sales tax in multiple states.
Topics: sales tax compliance sales tax
2 min read
Amazon Warehouse Does Not Create Physical Nexus in PA
In a decision that may eventually have sales tax repercussions elsewhere, a state court has decreed that an Amazon warehouse creates no physical nexus for a group of online sellers.
Topics: sales tax nexus sales tax sales tax filing
4 min read
Risks of misunderstanding the impact of economic nexus
By now most businesses that sell online have heard about nexus, the connection that a company has with a jurisdiction that ignites a sales tax obligation. Nexus can be economic and based on a threshold of sales volume in a given time. Nexus can also be physical, created by inventory, employees or reps in a state or jurisdiction.
Topics: sales tax compliance sales tax economic nexus
4 min read
What was new in August for state sales and use taxes
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax compliance sales tax sales tax news
4 min read
The Complexities of Sales Tax On Leases | TaxConnex
Sales tax is complicated no matter the industry you are in. But the leasing industry brings out even more complicated nuances depending on the type of lease, support activities and even the leased item itself.
Topics: sales tax nexus sales tax taxability
3 min read
How not to tank your sales tax audit (part 2)
The sales tax audit can be one of the scariest – and costliest -- things an online business ever goes through. If you do get hit with an audit, it’s critical to handle the process correctly.
Topics: sales tax compliance sales tax audits
4 min read
How not to tank your sales tax audit (part 1)
If you are a business that must collect and remit sales tax, an audit is probably one of your biggest fears. Rightly so: Sales tax audits can find fault with a variety of your operations and can cost you big– if the determination goes against you.
Topics: sales tax compliance sales tax audits
3 min read
Colorado: Fee or tax?
Remote retail sales just got rockier in Colorado, which has begun imposing a 27-cent fee on every retail delivery made by motor vehicle to a destination in the state.
Topics: sales tax compliance sales tax retail
4 min read
Don't forget physical nexus!
Businesses who sell over the internet must pay a lot of attention to far-flung economic tax thresholds – all states with a state wide sales tax and more than a few localities enforce them now – so it’s easy to overlook a more-obvious tripwire like physical presence.
Topics: sales tax nexus south dakota vs. wayfair retail
4 min read
3 things to remember about economic nexus
This June marked 4 years since the landmark Supreme Court decision that launched economic nexus, South Dakota v. Wayfair, Inc et al, but many businesses are still trying to figure out how to manage sales tax obligations brought on by this decision. The following is a list of 3 things you need to know to get started in understanding your economic nexus footprint.
Topics: sales tax nexus sales tax economic nexus
4 min read
App Purchases | Sales and Use Tax On Apps | TaxConnex
Many tech companies consider themselves a service provider exempt from sales and use tax. But the 2018 Wayfair decision expanded the definition of nexus and and more of these businesses are now subject to sales and use tax collection, including on one of their product staples: apps.
Topics: sales tax taxability software
6 min read
5 reasons you need continuity in a sales tax provider
Consistent (i.e., “good”) service is a nice thing to have in any industry. In a field that changes as fast as sales tax, it’s a necessity.
Topics: sales tax compliance sales tax filing
4 min read
Taxability for Contractors
A contractor is generally defined as someone who provides improvements to real property on a lump sum contract basis. From a sales and use tax perspective, there isn’t much of a difference between a subcontractor and a prime or general contractor.
Topics: sales tax compliance taxability
1 min read
TaxConnex® Chosen to Speak at Two GSCPA Events This Fall and Exhibiting this Week at the Southeastern Accounting Show!
We are excited to announce that we have been chosen by the Georgia Society of CPAs to speak at two events this fall and exhibit at this week’s Southeastern Accounting Show!
Topics: CPA Now it's all on us events
3 min read
Do Remote Employees Create a Sales Tax Nexus? | TaxConnex
Do remote employees create nexus? Well, a lot of times regarding sales tax, the answer to any question is, “It depends.”
Topics: sales tax nexus sales tax compliance
5 min read
You Can't Solve Sales Tax Problems with Technology Only
Since the Wayfair decision four years ago, sales tax compliance has had to become a major priority for businesses with multistate sales. In fact, 24% of finance professionals rank one of their top concerns of managing sales tax as keeping up with their evolving nexus footprint, according to a TaxConnex blind survey conducted at the end of 2021. The survey also stated that over 10% of respondents still weren’t fully aware of the impact of Wayfair (economic nexus) on their business.
Topics: sales tax compliance sales tax calculation sales tax filing
2 min read
Sales tax is a tricky world
A few recent developments – including scams and fine definitions –across the country show how sales tax compliance can be complicated.
Topics: sales tax compliance sales tax sales tax news
5 min read
What's new in July for state sales and use taxes
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax compliance sales tax sales tax news
4 min read
Marketplace facilitators: Your latest Q. and A.
We talk a lot about nexus and compliance processes in our content, but what about marketplace facilitators? In this blog we answer your top questions about marketplace facilitators.
Topics: sales tax compliance sales tax
3 min read
Sales tax holidays for the rest of the year
Holiday time already? In many states, sales tax holidays have been in full swing this year and will continue for months to come. Some of the deals are long-standing; others have been trotted out by lawmakers claiming to want to help constituents weather inflation.
Topics: sales tax retail
5 min read
Sales Tax Risk Mitigation: Your need-to-know guide
Failure to comply with the applicable sales tax rules can have a devastating effect on a business, but they’re often overlooked because they’re considered “pass-through” as the business is responsible for collecting the applicable taxes which pass through the business and are subsequently turned over or paid to the states. While these pass-through taxes are not meant to create a financial burden on a business, failure to comply can create significant risk.
Topics: sales tax compliance sales tax audits VDA
6 min read
7 Indicators It's Time to Switch Sales Tax Compliance Providers
Partnerships, just like your sales tax obligations, evolve over time. Sales tax is not a set it and forget it task, so if you’ve handed things off and aren’t sure how things are going, it may be time for a check-up with your provider.
Topics: sales tax compliance sales tax filing
4 min read
When do I have to start collecting out of state sales tax? Part 2
Understanding economic and physical nexus and the taxability of your products and services goes a long way to ensuring your sales tax compliance. But nothing’s that simple with sales tax.
Topics: sales tax nexus retail economic nexus
3 min read
When do I have to start collecting out of state sales tax? Part 1
Online retailers face a lot of challenges today. Sales tax obligations are among them.
Topics: sales tax nexus retail economic nexus
2 min read
Online selling the subject of recent judgments
Several recent court cases show how tricky the legal system can be for online sellers managing sales tax obligations.
Topics: sales tax retail economic nexus
5 min read
What's new in state sales and use taxes
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax compliance sales tax sales tax news
2 min read
Sales tax post-Wayfair: Costly for remote sellers, a cash cow for states
If it feels to you like the whole economic nexus and sales tax landscape is one-sided, the U.S. Government Accountability Office and many small businesses seem to agree.
Topics: sales tax compliance sales tax economic nexus
2 min read
6 things to know about sales tax in Canada
Can U.S. companies sell profitably to the north? Sure, if statistics are any indication Canada is the 10th-largest eCommerce market in the world estimated at 35 billion USD last year.
Topics: sales tax compliance sales tax canada
3 min read
Gross vs. taxable sales: Which count toward economic nexus?
Determining your sales tax obligations hinges on if your products or services are taxable and whether you have sales tax nexus which can be defined as either a physical presence or economic presence. That by itself is confusing enough, and unfortunately it gets more confusing.
Topics: sales tax compliance sales tax taxability
2 min read
The XYZ Sales Tax Compliance Letter | TaxConnex
Complying with your sales tax obligations involves a lot of variables – your nexus, taxability of your products, type of customer you are selling to, etc. Another key factor that effects your sales tax obligations is related to exempt transactions and exemption certificates.
Topics: sales tax compliance taxability sales tax filing
6 min read
Four years since Wayfair: A trend takes hold
What a 48 months it’s been.
Topics: sales tax compliance south dakota vs. wayfair economic nexus
4 min read
Are travel services taxable?
Summer vacation season is here – and it’s yet another area where sales tax shows up.
Topics: sales tax compliance taxability economic nexus
3 min read
Gross vs. taxable sales: Which count toward economic nexus?
Determining your sales tax obligations hinges on if your products or services are taxable and whether you have sales tax nexus which can be defined as either a physical presence or economic presence. That by itself is confusing enough, and unfortunately it gets more confusing.
Topics: sales tax compliance taxability economic nexus
8 min read
What's new in May for state sales and use taxes
What’s new in May for state sales and use taxes
Topics: sales tax compliance sales tax filing economic nexus
3 min read
Multi-channel selling sales tax: Marketplace facilitators
The exploding world of eCommerce has put a new player front and center: the marketplace facilitator.
Topics: sales tax compliance sales tax filing economic nexus
3 min read
Multi-channel selling sales tax: Wholesalers and Drop Shipping
Sales of tangible personal property (TPP) are presumed to be taxable unless specifically identified as not taxable. However, certain exemptions could apply making the sale of TPP exempt from sales tax in some situations. An exemption could be related to the type of business that is buying the TPP – a non-profit or government entity in certain states for example. But the most common type of exemption is a resale exemption and is applicable to wholesale transactions.
Topics: sales tax compliance sales tax filing economic nexus
3 min read
Multi-channel selling sales tax: Direct/retail sales
Taxable sales of products direct to end users has been a staple of business for ages. One relatively new development is the complex overlay of sales tax on these transactions.
Topics: sales tax compliance sales tax calculation economic nexus
4 min read
States with local economic nexus - a review
Given the complexity that already exists regarding sales tax, it’d be great if states were the only jurisdictions that levied them.
Topics: sales tax compliance sales tax filing economic nexus
3 min read
Trends: Are sourcing rules changing (and making anything easier)?
“Sourcing” or as we often call it, situsing, is key when you determine sales tax obligations: It refers to the location where a sale is taxed. According to the Sales Tax Institute there may be changes on the horizon– and though the aim appears to lean towards improving life for remote sellers, the changes only seem to make meeting sales tax obligations harder.
Topics: sales tax compliance economic nexus registrations
3 min read
5 Crucial Pieces of Your Sales Tax Compliance Filing Process
Once you’ve determined your requirement to collect and remit sales tax, you’ve set-up a process to charge sales tax, and you have registered with each required state, you need to consider how you will manage the return filing process.
Topics: sales tax compliance sales tax filing
3 min read
What’s new: state sales and use taxes
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax compliance sales tax news
4 min read
5 Common Sales Tax Mistakes That Can Put You At Risk for Non-Compliance
You’re trying to run a business and sales tax is not at the forefront of your plans. Nevertheless, you can do a quick check for the most common errors. Make sure you aren’t making these common tax mistakes to ensure you have sales tax in order and aren’t at risk for penalties and fees in the case of an audit.
Topics: sales tax compliance taxability sales tax audits
4 min read
Top Reasons to Change an Outsourced Sales Tax Provider
From time to time, sales tax outsourcing relationships fail to work properly, and a change is necessary.
As the sales tax outsourcing relationship progresses over time, sales and marketing messages give way to the realities of the operational relationship. Changes in ownership, staff or operations can affect provider performance or client needs. Let’s take a look at some of the major beefs that respondents had with their sales tax providers based on a survey TaxConnex conducted of financial professionals at the end of 2021.
Topics: sales tax compliance sales tax
5 min read
The new breed of audit
In years past, auditors could show up at your door asking to look at your records. Now that’s much less common. Usually, you learn about an audit through a notice or letter from the state or jurisdiction in question with instructions on how the audit will proceed. Many audits are conducted remotely, and an auditor never visits your office. Audits remain an important tool for tax jurisdictions to evaluate the level, or lack thereof, of sales tax compliance within a business. Even though many audits have shifted to remote audit, the fundamentals of the sales tax audit haven’t changed.
Topics: sales tax compliance sales tax audits VDA
5 min read
The Risks and Repercussions of Non-Compliance
Not paying attention to your sales tax obligations is never wise.
True, it’s a relatively new requirement to collect sales and use tax from remote customers, but it’s one the taxman has always taken seriously from businesses – and that seriousness is only intensifying.
It’s also mostly up to you to determine your sales tax obligation, and the rules for complying change frequently. A recent TaxConnex survey found that four out of five respondents were not confident about how their company handled its sales tax obligations.
Topics: sales tax compliance sales tax taxability economic nexus
6 min read
Crypto, NFTs and sales tax: What we know so far
Sales tax has a universe of changing conditions. Now we can add more: cryptocurrency (such as bitcoin) and what seems to be its cousin, non-fungible tokens (NFTs).
Topics: sales tax compliance sales tax taxability
4 min read
Getting Sales Tax Registrations Right
Sales tax is more complicated than ever, especially in a post-Wayfair world. And what’s worse is that everyone who says they’re simplifying sales tax is still leaving the hardest parts – and the liability – up to you. This is especially true when it comes to state registrations. For some reason, many of the software and service providers who claim to manage sales tax for you, don’t help with registrations, and if they do it comes at extra cost.
Topics: sales tax compliance sales tax economic nexus registrations
4 min read
What’s new for state sales and use taxes
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax compliance sales tax sales tax news
3 min read
Deadlines galore: One of the biggest challenges of sales tax
Federal Income Tax Day, April 18th, looms large in everybody’s mind right now. Too bad sales tax doesn’t come with a deadline that simple.
Topics: sales tax compliance sales tax sales tax filing
4 min read
The Evolving Taxability of SaaS
Tangible personal property has historically been subject to the collection and remittance of sales tax while many services have been non-taxable (or exempt). More and more services are becoming taxable and represent a potential big wave of tax changes and updates in the years ahead.
Topics: sales tax compliance taxability SaaS
6 min read
What is Consumer & Sellers Use Tax | TaxConnex
Sometimes if we hear a phrase often enough, we don’t appreciate the importance of all the words. One such phrase is “sales and use tax.”
Topics: sales tax compliance sales tax filing use tax
3 min read
Subscription Billing and Your Sales Tax Obligation
Subscription-based selling is appealing to businesses for its reliability of loyal customers and steady revenue. From gift boxes to magazines to cutting-edge software, it’s one of the most diverse ways of selling.
The model does come with steady sales tax obligations and risks though, and if not properly understood, it could lead to significant sales tax risk in the business.
Topics: sales tax compliance retail sales tax filing
4 min read
Impacts of using a marketplace facilitator
Online sellers hear an endless amount these days about “marketplace facilitators.” What are they? How can they help you? And how can they hurt?
Topics: sales tax compliance retail sales tax filing
4 min read
Vendor concessions/discounts can help pay to outsource sales tax obligations
Collecting and remitting sales tax to states and other tax jurisdictions is time consuming and can be expensive. If only somebody could help you with the costs of managing it...
Topics: sales tax compliance sales tax sales tax filing
5 min read
Seeing green: States learn the importance of sales tax
Economic nexus is now pretty much the law of the land for all states with a statewide sales tax. But what has been the impact on states?
Topics: sales tax nexus sales tax compliance economic nexus
3 min read
What’s new in state sales and use taxes
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates, with a special focus this month on how more states and jurisdictions look to roll back sales tax.
Topics: sales tax nexus sales tax compliance economic nexus
5 min read
Do you really understand economic nexus for sales tax?
Businesses have heard a lot about economic nexus over the past few years. But what exactly is economic nexus – and, more importantly, have you kept up with its constant changes in the sales tax realm?
Topics: sales tax nexus sales tax compliance economic nexus
2 min read
TaxConnex Annual Customer Survey Reveals World Class NPS Score for Second Year
TaxConnex® is excited to announce that for the second year in a row, their customer survey revealed a Net Promoter Score (NPS) score of 81.
Topics: sales tax compliance Now it's all on us sales tax filing
5 min read
Taxation of services
Understanding the taxability of your company’s products or services is one of the key steps to complying with sales and use tax laws. In many situations, your “products” can be easy to classify: They’re usually tangible (in fact, a key sales tax definition is “tangible personal property”) and you charge sales tax on property unless it falls into an exemption category.
Topics: sales tax compliance sales tax taxability
3 min read
Sales tax and accounting services
It’s that time of year again when everyone suddenly thinks about preparing their income taxes. But does tax preparation incur sales taxes – and if it does, where and how?
Topics: sales tax compliance sales tax
4 min read
Sales tax and M&A: Don't wait until it's too late
Mergers and acquisitions (M&A) capture a lot of headlines. The right merger or acquisition can spell fortunes for execs and shareholders and offer great chances to cut costs or snap up a valuable but distressed prize company. But sometimes, the deal is held up for various reasons – including sales tax exposure within the company being acquired.
Topics: sales tax compliance sales tax
5 min read
Software, SaaS and Sales Tax
If your business sells software or software-as-a-service (SaaS), you deal with one of the most complex sales tax situations, potentially without even realizing it.
Topics: sales tax taxability software SaaS
4 min read
4 Reasons to Outsource Sales and Use Tax
When is it worth getting a business problem off your plate? Businesses outsource tasks every day, from marketing to operations to finance. But is there more you should be outsourcing? Does it make sense to keep things in-house if you don’t have an expert on staff? According to TaxConnex’s recent market survey of 100 top finance professionals, this could be the year to outsource sales tax.
Topics: sales tax compliance sales tax
5 min read
Understanding the Pieces to Your Sales Tax Compliance Puzzle
This article was written for the Atlanta Business Chronicle Leadership Trust. To see the original post, click here.
In a little more than three years since the Supreme Court’s Wayfair decision, multi-state sales tax has gone from a simple obligation for some companies that were based solely in one state to a nightmare of complying with 50 different states’ sales tax rules.
Topics: sales tax nexus sales tax compliance
7 min read
What's New in State Sales and Use Taxes - Monthly Update
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax compliance taxability
6 min read
Evolution of the Sales Tax Audit: Have Audits Changed with Economic Nexus?
Sales tax has evolved a lot in recent years. So has the sales tax audit.
Topics: sales tax compliance taxability
4 min read
Online Ads: Who Taxes Them and Who Doesn't?
One of the next big trends in sales tax is one you should start thinking about: states taxing digital advertising.
Topics: sales tax compliance taxability
4 min read
Handling Sales Tax In-House: Job Market Challenges Continue
The explosion of the e-commerce market alone would’ve made handling sales tax obligations in-house tough. Add a tight job market and the task for many companies has become nearly impossible.
Topics: sales tax compliance sales tax
1 min read
TaxConnex® has Record Breaking Year in 2021 and is Set for Continued Growth in 2022
TaxConnex is excited to announce a record-breaking 2021 and reports annual organic revenue growth of 19% in 2021, proving that as sales tax becomes more complicated, businesses are continuing to look for a trusted provider to manage the burden for them. We are also excited to share that last year we onboarded more new clients than ever before and will have remitted over $1.5B in sales tax for our clients from 2021 returns.
Topics: Now it's all on us
3 min read
Who is Managing Your Notices?
Notices are a way for taxing jurisdictions to get in touch with you. Monitoring and responding to notices as well as making the corresponding adjustments or taking the prescribed actions is one of the many pieces of your sales tax compliance process. A very important piece in fact, as ignoring a notice can put you and your business in hot water, opening the door to additional penalties and fees. So who is managing your sales tax notices?
Topics: sales tax compliance sales tax
3 min read
The Importance of Validating Resale Tax Exemption Certificates
There’s a lot of talk in sales tax about nexus, thresholds, forms, filing and many other details of compliance. One often overlooked aspect of compliance, but extremely important, is the sales tax exemption certificate.
Topics: sales tax compliance sales tax
4 min read
End of the Year Sales Tax Updates to be Aware of as You Start 2022
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax compliance
3 min read
Sales Tax on Shipping: When Does it Apply?
It’s one of the most important aspects of an online business – and one of the wackiest when trying to determine whether sales tax applies or not. What is it? Shipping.
Topics: sales tax compliance sales tax calculation
6 min read
Connecting the Dots Between Data and Returns: Know What You're Filing
Mechanics tell you that you can keep your car running best by checking the engine occasionally and keeping up with the recommended maintenance schedule. Sales tax is similar in that you need to monitor the process, adjust, and tune-up the process occasionally.
Topics: sales tax compliance sales tax filing
4 min read
2021: The Year in Review – Sales Tax
The whole world pinballed throughout a pandemic the last two years and continues to do so. Sales tax in 2021, though, seemed to move in only one direction: It intensified as even more states hopped on the economic nexus bandwagon and the sales tax burden for online businesses grew.
Topics: sales tax nexus sales tax compliance sales tax news
3 min read
Holiday Sales, Increased eCommerce Activity - and Sales Tax Obligations
It looks like another banner year for eCommerce and online shopping this holiday season. And that means that more companies may find themselves with new sales tax obligations.
Topics: sales tax nexus sales tax compliance
5 min read
Best Practices for Managing a Sales Tax Audit
If you and your company haven’t been hit with a sales tax audit yet, congrats. You should realize, though, that your luck might not hold out for much longer.
Topics: sales tax compliance sales tax audits
4 min read
Handling Sales Tax In-House: The Job Market Challenge
Staying on top of the ever-evolving sales tax landscape takes constant time and attention. Many companies believe this is something they can manage in-house, though the current job market might make that difficult, if not impossible.
Teams are leaner than ever as existing employees quit, and new ones are harder to find. What should you know, what should you look for, and what are your options?
Topics: sales tax compliance sales tax
2 min read
Doing More with Less: Is It Time to Make a Change?
2021 has been another year of tumultuous change. As the global pandemic dragged deep into the year, much longer than many anticipated, businesses were once again forced to adjust their strategies. The dramatic reduction in available skilled resources left many organizations trying to do more with less, even while business complexities continued to grow.
Topics: sales tax compliance sales tax
4 min read
What's New in State Sales and Use Taxes?
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax compliance sales tax news
2 min read
Sales Tax Obligations for Manufacturers and Wholesalers, Part 2: Monitoring Nexus Thresholds on Sales From Your Own Website
Wholesalers and manufacturers/distributors have some big advantages regarding sales tax compliance – but they can also have hidden obligations.
Topics: sales tax compliance sales tax filing
4 min read
Risks of Non-Compliance
Rolling the dice with sales tax compliance can backfire in a big way. And there are several examples that take this to the extreme. Keep reading to see some recent sales tax missteps that had big costs.
Topics: sales tax compliance sales tax audits
3 min read
Sales Tax Obligations for Manufacturers and Wholesalers, Part 1: Resale Certificates and Exemptions
Many manufacturers, wholesalers, and distributors believe they have minimal sales tax obligations due to the likelihood of sales tax-exempt transactions. However, there are numerous pitfalls to be aware of.
Topics: sales tax compliance sales tax filing
2 min read
Ensuring Data Consistency
When you look at the details involved in your sales tax compliance process – preparing and filing returns, updating the filing calendar, managing notices, monitoring nexus thresholds and on and on – it’s easy to see why you need to simplify the process wherever possible. One important factor is consistent, properly formatted data with the necessary data fields.
Topics: sales tax compliance sales tax audits sales tax filing
4 min read
How eCommerce Businesses Can Stay Compliant in Their Busiest Time of the Year
We are in the midst of the busiest shopping season of the year. A time many retail businesses rely on to meet their year-end numbers. But what happens when a world still rocked by the pandemic continues to make the majority of its sales online?
Topics: sales tax compliance retail
6 min read
Options in Mitigating Past Sales Tax Liability
Most businesses don’t set out to be non-compliant with sales tax, or anything for that matter. In fact, you probably have the best of intentions of meeting your sales tax obligations in the future.
Topics: sales tax compliance sales tax news
6 min read
Understanding Affiliate Nexus and Other Forms of Physical Presence
The explosive growth of online sales means that state and local governments are searching for ways to recoup the tax revenue that they have determined they are owed. Between the second quarter of 2020 and the second quarter of 2021, online sales in the United States grew by 28 percent. States are eager to take a portion of these sales and include them in their general tax revenues.
Topics: sales tax compliance sales tax news
6 min read
What Happened in October for State Sales and Use Taxes
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax compliance sales tax news
3 min read
3 Components of Sales Tax to Not Forget
You might think that collecting the tax and filing a tax form is all you need to be sales tax compliant. You wouldn’t be completely wrong – filling out the form is a huge start – but other steps are needed to fully manage your compliance.
Topics: sales tax compliance sales tax
3 min read
TaxConnex Releases Research that Reveals Top Concerns Among Financial Leaders Responsible for Sales Tax in 2022
TaxConnex is pleased to announce the completion of their second annual sales tax survey finding that the increasing sales tax complexities, growing nexus, fear of sales tax audits and limited resources to do what is necessary to remain compliant are among the top worries of financial professionals heading into 2022.
Topics: sales tax compliance sales tax
2 min read
Sales Tax and Vitamins/Dietary Supplements
You won’t find too many more confusing sales tax scenarios than the one involving dietary supplements.
For purposes of sales tax, sometimes supplements and vitamins are considered drugs (prescription or not), sometimes groceries or food, sometimes tangible personal property – and sometimes not. In still other instances, they’re not taxed at all. So how do you manage your sales tax liability if you are selling vitamins, dietary supplements or other items that fall into this undescriptive category?
Topics: sales tax compliance sales tax
4 min read
Sales Tax Can Be Scary
It may be the season of ghosts and goblins, but sales tax obligations last all year, and as many would admit, keeping track of all your sales tax obligations can be quite scary.
Topics: sales tax compliance sales tax
3 min read
Name Your Sales Tax Data Files for the Long Haul
When we talk with businesses about sales tax compliance, we eventually get to a discussion about preparing and filing returns. Many times, this starts with “how hard can it be”. “It’s just putting numbers on a form”. However, I encourage businesses to consider the myriad aspects that need to be managed including updating your tax filing calendar, managing sales tax notices, monitoring their nexus thresholds, etc. Other key aspects include understanding your data sources, storing the data in a shared location, and naming them in a consistent format. This will help streamline your audits when they occur.
Topics: sales tax compliance sales tax
3 min read
Understanding Your Sales Tax Obligations As an E-Commerce Business – a Checklist
Sales and use tax generally applies to the sale or use of tangible personal property (TPP) and certain services. For most brick-and-mortar retail stores, sales tax is relatively simple, but what happens when you open an online store? Whether you’re selling tangible personal property or other taxable materials online, your sales tax obligations have changed considerably over the last few years with the introduction of economic nexus.
Topics: sales tax compliance sales tax
3 min read
How to Respond to Sales Tax Notices
You may think your business is in full compliance with your sales tax obligations nationwide – and you may well be – but America’s 10,000-plus sales tax jurisdictions love to send notices. And without the right correspondence or adjustments due to these notices, you could be in hot water.
Topics: sales tax compliance sales tax
4 min read
Top Skills Needed to Manage Sales Tax
The majority of businesses still manage their sales tax obligations with internal staff, but do they have what it takes to manage sales tax effectively?
Topics: sales tax nexus sales tax compliance
4 min read
NOMAD States: The Latest on Sales Tax
NOMAD and sales tax – I’m sure you’ve heard it before. But what does it mean?
Topics: sales tax nexus sales tax compliance
3 min read
Monthly State Sales and Use Tax Update
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax nexus sales tax compliance
3 min read
Excise Tax versus Sales Tax: What is the Difference?
Soon after you start dealing with states’ sales tax, you’re going to also run into another term: excise tax.
What is excise tax? And what‘s the difference between sales tax and excise tax?
Topics: sales tax compliance taxability
4 min read
What Happens if You Mess Up a Sales Tax Filing
Last week we talked about all of the different filing frequencies and deadlines you have to manage with your sales tax obligation. If you missed that – check it out! But what happens if you accidentally miss one of those deadlines, or you didn’t realize your deadline had changed?
Topics: sales tax compliance taxability
2 min read
Understanding Your Sales Tax Obligations as a Technology or Software Company - A Checklist
Sales and use tax generally applies to the sale or use of tangible personal property and certain services. Since software, and especially Software-as-a-Service, may not be delivered in a tangible form, many technology and software companies have considered themselves exempt from sales and use tax. But this is not always the case. In fact, many states impose sales and use tax on services provided by the technology industry.
Topics: sales tax compliance taxability
5 min read
Sales Tax for Subscription Boxes
Are subscriptions taxable? Well, over the past few years, subscription box services have increasingly grown in popularity. Buyers sign up for regular delivery of everything from food, makeup, music, books, pet supplies, flowers, clothes and more. This industry has ridden the wave of eCommerce and the growing expectation among shoppers that much of what they want to buy can come right to their door.
Topics: sales tax compliance sales tax filing
2 min read
Why So Many Filing Frequencies?
When attempting to manage your sales tax obligations across many different states, one of the first things to hit you will be the dizzying number of deadlines you must follow when filing sales tax returns. Due dates can include the 7th, 10th, 15th, 20th, 30th and the last day of the month.
Topics: sales tax compliance sales tax filing
3 min read
Prices, Shipping, Growth: New Trends in E-Commerce
How much are consumers spending online, and what do merchants pay for shipping in relation to the overall revenue from those e-commerce orders?
Topics: sales tax compliance sales tax filing
4 min read
What's New in State Sales and Use Taxes
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax compliance sales tax
2 min read
What you need to know: “Origin” vs. “destination” states
In real estate they say, “Location! Location! Location!” Same is true for sales tax – except the word can have different meanings.
For example, when it comes to sales tax, do you need to follow “destination-based” or “origin-based” rules?
Topics: sales tax sales tax filing
2 min read
Tips to Ensure You Don't Mishandle a Sales Tax Audit
Managing a sales and use tax audit can be challenging. And many businesses mishandle the process, making it all that much more difficult on themselves.
Topics: sales tax compliance sales tax audits
4 min read
All You Need to Know About VDAs
A Voluntary Disclosure Agreement (VDA) can be a great tool to address past sales tax obligations, but it’s important to consider all the plusses and minuses and ensure you make the right decision for your business when it comes to mitigation efforts.
Topics: sales tax compliance VDA
3 min read
The Growth of E-Commerce and Your Sales Tax Obligation
Is it just your imagination or is e-commerce expanding every year?
Topics: sales tax compliance sales tax filing
3 min read
Marketplace Facilitator Sales Tax Obligations | TaxConnex
Amazon, eBay and Etsy are more than household names. In the world of sales tax, they’re major marketplace facilitators.
Topics: sales tax compliance sales tax filing
5 min read
The Pandemic's Impact on Businesses and Sales Tax: An Update
This article was written for the Atlanta Business Chronicle Leadership Trust. To see the original post, click here.
In the fall of 2020, I published an article on how the sales tax picture is changing due to COVID-19. Now that we’re over a year into the pandemic, I wanted to provide an update on the sales tax landscape, what predictions have remained the same and what’s changed.
Topics: sales tax compliance taxability
3 min read
The Enigma of Drop Shipments for Sales Tax Purposes
Sales tax is full of complexities, but there are certain topics that seem to cause more of a headache than others. Drop shipments are one of those topics.
Topics: sales tax compliance taxability
2 min read
TaxConnex featured on Worldwide Business with kathy ireland® on Fox Business Network
TaxConnex is proud to announce that last Sunday, August 8, TaxConnex founder and CEO, Robert Dumas, was interviewed on the Kathy Ireland show as branded content!
Topics: Now it's all on us
2 min read
Video Conferencing: Has the Pandemic Created a New Taxation?
Ever had a bad connection on a video conferencing platform? It can be a confusing and frustrating experience.
That’s a lot like understanding the taxes on videoconferencing services right now. With the recent boom of video conferencing brought on by the necessity of a way to meet during the pandemic, businesses and governments alike are trying to figure out how to best apply sales tax to these services, or if they are even taxable.
Topics: sales tax compliance taxability
5 min read
What's New in Sales and Use Tax?
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates.
Topics: sales tax compliance sales tax filing
1 min read
Sales Tax Complexity Snapshot: Chicago
Sales tax is complex for any business selling into multiple states. But there are specific states and jurisdictions that make it extra confusing for those trying to maintain compliance. One such location is Chicago, Illinois.
Topics: sales tax compliance sales tax filing
2 min read
Resale Certificates: What They Are and How to Use Them
An exemption certificate is used to exempt an otherwise taxable transaction from sales tax. The most common exemption certificate is a resale exemption certificate (aka a resale certificate). In the absence of a valid resale certificate, an auditor is likely to assume the transaction was taxable. As a result, it’s critical for the seller to maintain copies of these resale certificates in the event of an audit.
Topics: sales tax compliance sales tax filing
4 min read
Calculation vs. Compliance: A Deep Dive into Two Important Pieces of Your Sales Tax Process
For most businesses, sales tax is not a top priority. It probably doesn’t even make the top 5 list! But if not managed correctly, it can cause major headaches. Understanding the various aspects of your sales tax process is critical to minimize your risk and to keep your business on solid ground as it relates to sales tax.
Topics: sales tax compliance sales tax calculation
3 min read
Home Rule States Sales Tax Local Jurisdictions
There’s no way to sugarcoat it: Sales tax obligations are already difficult at the state level, but when you bring it down to local jurisdictions, or home rule jurisdictions, you get the next level of complexity.
Topics: sales tax compliance sales tax news
4 min read
Monthly Sales and Use Tax Update
There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates that occurred over the last month.
Topics: sales tax compliance sales tax news
3 min read
TaxConnex Launches New Website
We are very excited to announce the launch of our newly designed website. Visit us at www.taxconnex.com to check it out!
Topics: Now it's all on us
4 min read
Preparing Your Business for Sales Tax Holidays
Many states use sales tax holidays to waive or reduce sales tax on various items. These holidays can be annual or even two or more times a year. Online purchases usually receive the same tax treatment during these holidays as in-person purchases; remote sellers aren’t permitted to charge tax on qualifying goods during sales tax holidays, but how do you know where this is happening and when or when not to charge sales tax?
Topics: sales tax compliance sales tax
2 min read
Missouri Enacts Economic Nexus
Missouri has officially become the last state with a state-wide sales tax to enact economic nexus.
The Show Me State follows on the heels of Florida, where economic nexus kicked in as of July 1 for remote sellers and marketplace facilitators.
Topics: sales tax compliance sales tax
3 min read
Your Personal Responsibility in Sales and Use Tax Non-Compliance
Sales tax is a significant revenue source for many states. In fact, according to the Tax Policy Center, for many states, it can comprise 25%-35% of a state’s revenue.
Topics: sales tax compliance sales tax
3 min read
3 Benefits to a Voluntary Disclosure Agreement
A voluntary disclosure agreement (VDA) is a legal means for taxpayers to self-report back taxes owed for income, sales, property, and other tax types. In exchange for voluntarily reporting the tax due, states offer a waiver of some penalties and other benefits to the business. If back taxes are not disclosed but are instead discovered through an audit, the taxpayer is at a disadvantage and will end up being assessed various penalties plus interest plus all historical tax due.
Topics: sales tax audits VDA
2 min read
Missouri Inches Toward Economic Nexus
A bill to enact economic nexus requirements – creating a sales and use tax obligation on remote sellers and marketplace facilitators – awaits only a signature to become law in Missouri.
Topics: sales tax nexus sales tax news south dakota vs. wayfair
5 min read
South Dakota Vs. Wayfair: Case Brief & Decision Summary
June 21 marked three years since the landmark decision in the South Dakota v. Wayfair case. The years since June 2018 have been unlike anything in the history of sales tax.
Topics: sales tax nexus south dakota vs. wayfair
3 min read
Legalization and Taxation of Cannabis
Legalization of cannabis and how it would be taxed has been a discussion for many years. But as states continue to pass laws legalizing the sale of cannabis, the businesses trying to capitalize on the market are struggling with the complexities of taxation as it differs from other sales.
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