4 min read

M&A negotiations and sales tax liability

By Robert Dumas on Thu, Oct 06, 2022 @ 11:00 AM

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

By Robert Dumas on Tue, Oct 04, 2022 @ 11:05 AM

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

By Robert Dumas on Thu, Sep 29, 2022 @ 02:00 PM

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 Robert Dumas on Tue, Sep 27, 2022 @ 04:18 PM

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

By Robert Dumas on Thu, Sep 22, 2022 @ 11:00 AM

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

Complexities of Sales Tax: Leasing

By Robert Dumas on Thu, Sep 22, 2022 @ 11:00 AM

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)

By Robert Dumas on Tue, Sep 20, 2022 @ 11:00 AM

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)

By Robert Dumas on Thu, Sep 15, 2022 @ 11:00 AM

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?

By Robert Dumas on Tue, Sep 13, 2022 @ 02:39 PM

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!

By Robert Dumas on Thu, Sep 08, 2022 @ 01:00 PM

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

By Robert Dumas on Thu, Sep 01, 2022 @ 07:30 PM

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 and sales and use tax

By Robert Dumas on Tue, Aug 30, 2022 @ 02:10 PM

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

By Robert Dumas on Thu, Aug 25, 2022 @ 12:12 PM

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
1 min read

TaxConnex™ Chosen to Speak at Two GSCPA Events This Fall and Exhibiting this Week at the Southeastern Accounting Show!

By TaxConnex on Tue, Aug 23, 2022 @ 02:12 PM

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

Can remote employees create sales tax nexus?

By TaxConnex on Thu, Aug 18, 2022 @ 02:32 PM

A lot of times regarding sales tax, the answer to any question is, “It depends.” This is another of those times.

Topics: sales tax nexus sales tax compliance
5 min read

You Can't Solve Sales Tax Problems with Technology Only

By TaxConnex on Tue, Aug 16, 2022 @ 11:00 AM

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

By TaxConnex on Thu, Aug 11, 2022 @ 02:06 PM

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

By TaxConnex on Tue, Aug 09, 2022 @ 11:00 AM

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.

By TaxConnex on Thu, Aug 04, 2022 @ 03:15 PM

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

By TaxConnex on Tue, Aug 02, 2022 @ 11:00 AM

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

By TaxConnex on Thu, Jul 28, 2022 @ 02:00 PM

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

By TaxConnex on Tue, Jul 26, 2022 @ 11:30 AM

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

By TaxConnex on Thu, Jul 21, 2022 @ 12:51 PM

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

By TaxConnex on Tue, Jul 19, 2022 @ 11:00 AM

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

By TaxConnex on Fri, Jul 15, 2022 @ 08:48 AM

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

By TaxConnex on Tue, Jul 12, 2022 @ 11:00 AM

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

By TaxConnex on Thu, Jul 07, 2022 @ 11:00 AM

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

By TaxConnex on Tue, Jul 05, 2022 @ 01:35 PM

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?

By TaxConnex on Thu, Jun 30, 2022 @ 03:07 PM

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 Letter' and your sales tax compliance

By TaxConnex on Tue, Jun 28, 2022 @ 11:32 AM

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

By Robert Dumas on Tue, Jun 21, 2022 @ 11:00 AM

What a 48 months it’s been.

Topics: sales tax compliance south dakota vs. wayfair economic nexus
4 min read

Are travel services taxable?

By Robert Dumas on Thu, Jun 16, 2022 @ 02:17 PM

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?

By Robert Dumas on Tue, Jun 14, 2022 @ 11:00 AM

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

By Robert Dumas on Thu, Jun 09, 2022 @ 11:31 AM

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

By Robert Dumas on Tue, Jun 07, 2022 @ 11:00 AM

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

By Robert Dumas on Thu, May 26, 2022 @ 11:00 AM

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

By Robert Dumas on Tue, May 24, 2022 @ 11:00 AM

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

By Robert Dumas on Thu, May 19, 2022 @ 10:58 AM

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)?

By Robert Dumas on Tue, May 17, 2022 @ 11:46 AM

“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

By Robert Dumas on Thu, May 12, 2022 @ 11:00 AM

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

By Robert Dumas on Tue, May 10, 2022 @ 11:00 AM

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

By Robert Dumas on Thu, May 05, 2022 @ 11:54 AM

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

By Robert Dumas on Tue, May 03, 2022 @ 11:15 AM

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

By Robert Dumas on Thu, Apr 28, 2022 @ 11:30 AM

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

By Robert Dumas on Tue, Apr 26, 2022 @ 11:00 AM

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

By Robert Dumas on Tue, Apr 19, 2022 @ 11:00 AM

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

By Robert Dumas on Thu, Apr 14, 2022 @ 11:00 AM

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

By Robert Dumas on Tue, Apr 12, 2022 @ 11:00 AM

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

By Robert Dumas on Thu, Apr 07, 2022 @ 11:15 AM

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

By Robert Dumas on Tue, Apr 05, 2022 @ 11:00 AM

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

Understanding use tax

By Robert Dumas on Thu, Mar 31, 2022 @ 11:30 AM

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

By Robert Dumas on Tue, Mar 29, 2022 @ 11:15 AM

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

By Robert Dumas on Thu, Mar 24, 2022 @ 11:15 AM

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

By Robert Dumas on Tue, Mar 22, 2022 @ 11:30 AM

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

By Robert Dumas on Thu, Mar 17, 2022 @ 11:15 AM

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

By Robert Dumas on Tue, Mar 15, 2022 @ 11:15 AM

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?

By Robert Dumas on Thu, Mar 10, 2022 @ 11:15 AM

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

By Robert Dumas on Tue, Mar 08, 2022 @ 11:00 AM

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

By Robert Dumas on Thu, Mar 03, 2022 @ 11:15 AM

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

By Robert Dumas on Tue, Mar 01, 2022 @ 11:15 AM

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

By Robert Dumas on Thu, Feb 24, 2022 @ 11:15 AM

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

By Robert Dumas on Tue, Feb 22, 2022 @ 11:15 AM

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

By Robert Dumas on Tue, Feb 15, 2022 @ 11:00 AM

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

By Robert Dumas on Thu, Feb 10, 2022 @ 11:00 AM

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

By Robert Dumas on Tue, Feb 08, 2022 @ 11:00 AM

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?

By Robert Dumas on Thu, Feb 03, 2022 @ 11:00 AM

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?

By Robert Dumas on Tue, Feb 01, 2022 @ 11:00 AM

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

By Robert Dumas on Thu, Jan 27, 2022 @ 11:00 AM

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

By Robert Dumas on Tue, Jan 25, 2022 @ 11:00 AM

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?

By Robert Dumas on Thu, Jan 20, 2022 @ 11:00 AM

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 Certificates

By Robert Dumas on Tue, Jan 18, 2022 @ 11:00 AM

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

By Robert Dumas on Thu, Jan 13, 2022 @ 11:00 AM

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?

By Robert Dumas on Tue, Jan 11, 2022 @ 11:00 AM

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

By Robert Dumas on Tue, Jan 04, 2022 @ 11:00 AM

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

By Robert Dumas on Thu, Dec 30, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Dec 28, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Dec 23, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Dec 21, 2021 @ 11:00 AM

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?

By Robert Dumas on Thu, Dec 16, 2021 @ 11:00 AM

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?

By Robert Dumas on Tue, Dec 14, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Dec 09, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Dec 07, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Dec 02, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Nov 30, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Nov 23, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Nov 18, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Nov 16, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Nov 11, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Nov 09, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Nov 04, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Nov 02, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Oct 28, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Oct 26, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Oct 21, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Oct 19, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Oct 14, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Oct 12, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Oct 07, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Oct 05, 2021 @ 11:00 AM

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 is it different from sales tax?

Topics: sales tax compliance taxability
4 min read

What Happens if You Mess Up a Sales Tax Filing

By Robert Dumas on Thu, Sep 30, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Sep 28, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Sep 23, 2021 @ 11:00 AM

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 e-commerce 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?

By Robert Dumas on Tue, Sep 21, 2021 @ 11:00 AM

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
2 min read

Prices, Shipping, Growth: New Trends in E-Commerce

By Robert Dumas on Thu, Sep 16, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Sep 14, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Sep 07, 2021 @ 11:15 AM

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

By Robert Dumas on Thu, Sep 02, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Aug 31, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Aug 26, 2021 @ 11:00 AM

Is it just your imagination or is e-commerce expanding every year?

Topics: sales tax compliance sales tax filing
3 min read

Marketplace Facilitators Create Their Own Sales Tax Obligations

By Robert Dumas on Tue, Aug 24, 2021 @ 11:30 AM

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

By Robert Dumas on Thu, Aug 19, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Aug 17, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Aug 12, 2021 @ 11:00 AM

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?

By Robert Dumas on Thu, Aug 05, 2021 @ 11:00 AM

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?

By Robert Dumas on Tue, Aug 03, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Jul 29, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Jul 27, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Jul 22, 2021 @ 11:00 AM

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: Can Local Jurisdictions Create Sales Tax Obligations?

By Robert Dumas on Tue, Jul 20, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Jul 15, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Jul 13, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Jul 08, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Jul 06, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Jul 01, 2021 @ 11:00 AM

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

By Robert Dumas on Tue, Jun 29, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Jun 24, 2021 @ 11:00 AM

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

3 Years Post-Wayfair: A Look Back

By Robert Dumas on Tue, Jun 22, 2021 @ 11:00 AM

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

By Robert Dumas on Thu, Jun 17, 2021 @ 11:00 AM

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.  

Topics: sales tax compliance taxability
4 min read

Questions to Ask Your Sales Tax Provider Before You Sign the Contract

By Robert Dumas on Tue, Jun 15, 2021 @ 11:00 AM

They said it would be simple.  They said they could automate it all, but in fact, you’re still doing a lot of the work.  Why are you paying more penalties for missed notices and late payments than you were before you started working with your sales tax vendor?  Guess what – we frequently hear these situations from businesses ready to make a switch. The good news is there are other providers that put the client first and ensure sales tax is managed correctly. You just have to know what to ask when investigating your potential provider.

Topics: sales tax nexus sales tax compliance
7 min read

5 Steps to Tracking Your Economic Nexus Footprint

By Robert Dumas on Thu, Jun 10, 2021 @ 11:00 AM

Your sales tax obligations start with whether or not you have sales tax nexus. Without it, you have no obligation to collect and remit sales tax to specific taxing states or jurisdictions. Your sales tax nexus is determined by either a physical or economic presence within a taxing jurisdiction.  

Topics: sales tax nexus sales tax compliance
5 min read

Monthly Review of What's New in Sales & Use Tax

By Robert Dumas on Tue, Jun 08, 2021 @ 11:00 AM

There’s always something changing in the world of tax, especially sales tax. And 2021 continues to prove that. Here’s a review of some of the recent changes and updates.

Topics: sales tax sales tax news
3 min read

State Discounts for Sales Tax

By Robert Dumas on Tue, Jun 01, 2021 @ 11:00 AM

Collecting and remitting sales tax can be onerous – and expensive – for any business. That’s one reason some states give a collection discount to help with the costs of managing sales tax. 

Topics: sales tax compliance sales tax
5 min read

Taking a Look at Sales Tax Exemptions and Why They're Important

By Robert Dumas on Thu, May 27, 2021 @ 11:00 AM

Taking advantage of sales and use tax exemptions can save your business money and headaches. But exemptions can be harder to secure in some states than in others.

Topics: sales tax compliance sales tax sales tax filing
3 min read

Monitoring Economic Nexus Thresholds - Gross Receipts or Taxable Sales?

By Robert Dumas on Tue, May 25, 2021 @ 11:00 AM

Having a full understanding of your sales tax obligations is important for your peace of mind.  But, like most things in sales tax, this is easier said than done. It’s difficult enough to keep up with the different economic nexus thresholds per state, but for some states, the revenue thresholds are based on gross sales, and in other states, they are based on taxable sales. 

Topics: sales tax compliance taxability
4 min read

7 Steps to Make an Easy Transition to a New Sales Tax Outsourcing Provider

By Robert Dumas on Thu, May 20, 2021 @ 11:00 AM

We are approaching the three-year mark of the introduction of economic nexus and the South Dakota v. Wayfair decision.  In order to address their expanding sales tax obligation, many businesses decided to outsource the sales tax process and chose an “automated” solution. If you are one of these businesses, you may now realize that much of the sales tax process falls on your shoulders.

Topics: sales tax compliance sales tax filing
5 min read

7 Ways a Business is Selected for Audit

By Robert Dumas on Tue, May 18, 2021 @ 11:00 AM

As we entered 2021, many industry experts believed that state sales tax audits were likely to increase sharply due to the loss of state revenue during the pandemic. Likewise, in a recent TaxConnex survey we saw that two out of five respondents agree with the experts, saying that they expect sales tax audits to become more common over the next two years. 38% of respondents said they believe audit levels will stay the same, and in a separate question, 66% have already seen an increase in the number of audits in the past two years.

Topics: sales tax sales tax news
3 min read

Taxability and Your Products and/or Services - Easy Answer Right? It Depends.

By Robert Dumas on Thu, May 13, 2021 @ 11:00 AM

‘It depends’ is a commonly used phrase when it comes to sales tax, and a quite frustrating one at that. We know that. But when it comes to taxability, it’s often our answer. 

Topics: sales tax sales tax news
6 min read

4 Key Pieces of Your Sales Tax Compliance Process

By Robert Dumas on Tue, May 11, 2021 @ 11:00 AM

Both the process of reporting sales tax and the level of sales tax detail required varies from state to state.  Understanding the nuances of each state will help you avoid any missteps resulting in jurisdictional-imposed penalties.

Topics: sales tax compliance sales tax
4 min read

What's New in State Sales and Use Taxes

By Robert Dumas on Thu, May 06, 2021 @ 11:00 AM

There’s always something changing in the world of tax, especially sales tax. And 2021 continues that trend. Here’s a review of some of the recent changes and updates.

Topics: sales tax sales tax news
5 min read

Unexpected Growth Can Mean Sales Tax Obligations

By Robert Dumas on Tue, May 04, 2021 @ 11:00 AM

This article was written for the Atlanta Business Chronicle Leadership Trust. To see the original post, click here

Every business owner wants their company to grow. And when that growth is unexpected, it feels that much sweeter. But don’t forget that success that comes from selling into more states can also expand your sales tax burdens.

Businesses that sell into multiple states or jurisdictions have to pay attention to sales tax thresholds, and it’s not a one-time project. Almost all states and more than a few localities have enacted some form of economic presence as a way to enforce sales tax obligations ever since the 2018 Supreme Court Wayfair decision. Businesses must also be aware of triggering the obligation to collect and remit sales tax due to a physical presence. A physical presence is often seen as your physical office location but can be determined by where your inventory is stored, where employees work or where third-party contractors are utilized, among other criteria.

Having either a physical presence or an economic presence can lead to sales tax nexus, or the connection a business has with a state or taxing jurisdiction. Nexus can happen quickly (or over time) and for a variety of reasons.

Ways of creating a sales tax obligation

In the United States, a business’s obligation to collect and remit sales tax starts with nexus. Sales tax nexus can be categorized into economic or physical.

Economic nexus requires remote sellers that may not have previously had a physical presence to collect sales tax because they’ve reached state and jurisdiction revenue thresholds or reached certain transaction thresholds. In South Dakota, for instance, the revenue threshold is $100,000 in sales or 200 transactions in the previous or current calendar year. Many states mirror these same thresholds, while other states set their own parameters. Florida and Missouri have not implemented any economic nexus standards — but stay tuned as each state is considering options.

Physical nexus means a business has a direct connection to a state. Most often this happens when a business operates out of a brick-and-mortar location in a tax jurisdiction. Other activities that can create a physical presence/nexus include employees or offices in a state, sales reps or agents visiting a state, delivery vehicles or maintenance or repair services in a state, attending trade shows in a new state, or inventory stored in a state.

Topics: sales tax nexus sales tax
5 min read

Zero-Due Returns: What They Are and When You Have to File Them

By Robert Dumas on Thu, Apr 29, 2021 @ 11:00 AM

Suppose youre registered for sales tax in a jurisdiction because you have established sales tax nexus.  For various reason though, you don’t have any sales tax to remit.  You may think that because you haven’t collected any sales tax, you have no return to file. 

Topics: sales tax sales tax filing
5 min read

3 Common Missteps of Sales Tax

By Robert Dumas on Tue, Apr 27, 2021 @ 11:00 AM

Sales tax obligations are getting more complicated for businesses of all industries. And it takes just a few mistakes to add up to a big liability and hefty fees. In this blog, we’ll talk to some of the common missteps businesses make when trying to manage sales tax on their own.

Topics: sales tax nexus sales tax news
4 min read

Add Florida to the List of States with Economic Nexus!

By Robert Dumas on Thu, Apr 22, 2021 @ 11:00 AM

Topics: sales tax nexus sales tax news
3 min read

Sales Tax Compliance: Automated Returns or Service Provider?

By Robert Dumas on Tue, Apr 20, 2021 @ 11:00 AM

This time of year, everybody’s mind is on income tax preparation. And for many accountants and CPA firms, this time of year means extra-long hours and more time spent managing clients’ finances.

The fact is, when it comes to many companies’ federal and state income tax returns, they don’t rely on an automated income tax return. They turn to experts. Either those that they’ve hired internally or the trusted CPA firm they’ve utilized for years.

Topics: sales tax compliance sales tax filing
4 min read

Selling Into the U.S. - Understanding How Customer Location Impacts Which Sales Tax Rates and Rules You Apply

By Robert Dumas on Thu, Apr 15, 2021 @ 11:00 AM

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, local area tax jurisdictions also have power over some aspects of taxation and can set different rules for their area.

Topics: sales tax compliance sales tax
3 min read

5 Steps to a Complete Sales Tax Filing Process

By Robert Dumas on Tue, Apr 13, 2021 @ 11:00 AM

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. Don’t let sales tax compliance overwhelm you. Make the right decisions for your business so you can best manage compliance in a way that doesn’t overburden your finance team or put your business at risk of penalties and fees.

Topics: sales tax compliance sales tax filing
2 min read

Holdout States Moving Toward Sales Tax Requirements

By Robert Dumas on Thu, Apr 08, 2021 @ 11:00 AM

Of the 50 states, 45 (plus DC) charge a state-wide sales tax. Two of those states that have a state-wide sales tax, Missouri and Florida, have yet to adopt economic nexus standards set by the 2018 South Dakota v. Wayfair case. At least for now.

Topics: sales tax sales tax news
4 min read

Sales and Use Tax Updates from March

By Robert Dumas on Tue, Apr 06, 2021 @ 11:00 AM

There’s always something changing in the world of tax, especially sales tax. And 2021 continues to prove that. Here’s a review of some of the recent changes and updates.

Topics: sales tax sales tax news
4 min read

Understanding Sales Tax Exemptions and Exclusions

By Robert Dumas on Thu, Apr 01, 2021 @ 11:00 AM

Topics: sales tax compliance sales tax
4 min read

Overlooked Aspects of Your Compliance Process

By Robert Dumas on Tue, Mar 30, 2021 @ 11:00 AM

When you think about tax compliance, of any kind, the first thing that comes to mind is filing, or even the tax return itself. Compliance with sales tax goes way beyond that.

Topics: sales tax nexus sales tax compliance
4 min read

Taxability for Contractors

By Robert Dumas on Thu, Mar 25, 2021 @ 11:00 AM

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
4 min read

Are Digital Ad Taxes Spreading?

By Robert Dumas on Tue, Mar 23, 2021 @ 11:00 AM

Companies that sell digital products in the U.S. should know about a relatively new kind of tax – and tax obligation. 

Topics: sales tax compliance taxability
7 min read

Wayfair: Sales Tax and State Income Tax Implications

By Brian Greer on Thu, Mar 18, 2021 @ 11:00 AM

Topics: sales tax nexus sales tax compliance
7 min read

Don't Test Your Luck with Non-Compliance

By Robert Dumas on Tue, Mar 16, 2021 @ 11:00 AM

This St. Patrick’s Day, don’t look to four-leaf clovers, pots of gold or leprechauns to bail you out of trouble with sales tax. If your company has sales tax obligations and doesn’t have a process yet in place, plan for the risks of non-compliance.

Topics: sales tax compliance sales tax audits
3 min read

TaxConnex Rounds Out 2020 with an 18% Growth in Organic Revenue and an Industry Leading Net Promoter Score (NPS) of 83

By Robert Dumas on Fri, Mar 12, 2021 @ 09:00 AM

TaxConnex is excited to report exciting growth coming out of 2020. While 2020 was full of chaos and trials, sales tax filings and returns did not stop, and we were able to continue to assist our clients and grow as a company in both employee size and revenue.  

Topics: Now it's all on us
3 min read

Sales Tax Updates for Technology Companies

By Robert Dumas on Thu, Mar 11, 2021 @ 11:00 AM

Sales tax obligations regarding software and other technology-related solutions can often come down to location and definition. And the definition is potentially different depending on the location.

Four states recently took a closer look at how sales tax applies to technology-related solutions, one of the more confusing industries for complying with sales and use tax requirements.

Topics: sales tax nexus sales tax compliance taxability
6 min read

How To Evaluate Where You Have Established Economic Nexus

By Robert Dumas on Tue, Mar 09, 2021 @ 11:00 AM

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. In fact, a recent survey TaxConnex conducted through Porter Research found that the top sales tax worry of finance pros in 2021 was understanding changing nexus laws. 

Topics: sales tax nexus sales tax compliance
10 min read

Sales and Use Tax Updates from February

By Robert Dumas on Tue, Mar 02, 2021 @ 11:00 AM

There’s always something changing in the world of tax, especially sales tax. And 2021 is off to an especially busy start. Here’s a review of some of the recent changes and updates.

Topics: sales tax compliance sales tax news
4 min read

Understanding Use Tax

By Robert Dumas on Thu, Feb 25, 2021 @ 11:00 AM

You may think that if you do not have physical or economic tax nexus in a state, you do not have any tax obligations. However, this may not be the case. You can still have obligations to the certain tax authorities in a state even where you do not have nexus and are not required to collect and remit sales tax in the state.  

The reason? Use tax. Specifically, consumer’s use tax.

Topics: sales tax compliance sales tax audits
8 min read

Sales Tax Audits - The Danger Grows

By Robert Dumas on Tue, Feb 23, 2021 @ 11:00 AM

Many industry experts believe that as state tax revenues continue to dry up from the economic shutdown and continuing pandemicstate sales tax audits are likely to increase sharply in the coming months. States are in the same boat as many businesses when it comes to the stress and financial strain that comes along with the pandemic, and an increase in audits would help states recoup lost revenue and minimize budget deficits.

Topics: sales tax compliance sales tax audits
4 min read

Physical Presence Checklist

By Robert Dumas on Thu, Feb 18, 2021 @ 11:00 AM

Sales and use tax obligations are determined by your nexus within a state or jurisdiction. Sales and use tax nexus is defined as the connection between a person or entity and a taxing jurisdiction. It is the basis for all your sales tax decisions because without sales tax nexus, you have no further sales tax obligation to a state.

Topics: sales tax compliance taxability
4 min read

Sales Tax and Valentine's Day

By Robert Dumas on Thu, Feb 11, 2021 @ 11:00 AM

Candy, flowers, jewelry, dinners: The gifts may be the same, but Cupid’s arrow will fly in new online directions this year for Valentine’s Day presents. And it might land right on your company’s bottom line after sales and use tax obligations.

Topics: sales tax nexus sales tax compliance
12 min read

Selling Into States with Unusual Sales Tax Laws

By Robert Dumas on Tue, Feb 09, 2021 @ 11:00 AM

If you sell into the handful of states that don’t have nexus or don’t have general sales tax, you might think you’re home free when it comes to obligations to remit sales tax. Maybe, and maybe not. 

Topics: sales tax compliance taxability
2 min read

Why Are Businesses Dissatisfied With the Way They Manage Sales Tax?

By Robert Dumas on Thu, Feb 04, 2021 @ 11:00 AM

At the end of last year, TaxConnex commissioned Porter Research Group to conduct a survey of 100 finance leaders to understand the growing concerns they face related to sales tax heading into 2021.

Topics: sales tax compliance sales tax
3 min read

Telecom Tax and Other Specialty Transactions Taxes

By Robert Dumas on Tue, Feb 02, 2021 @ 11:00 AM

Sales tax is broadly defined to mean any tax that is charged to the end-user customer by the retailer of property or services. Though this definition is correct, it does not always provide a complete picture of a business’s transactions tax liabilities.

Topics: telecom tax taxability
3 min read

2021 State Sales and Use Tax Update

By Robert Dumas on Thu, Jan 28, 2021 @ 11:00 AM

There’s always something changing or new going on in the world of tax, especially sales tax. Here’s a review of some of the changes and updates in the last few months.

Topics: sales tax compliance sales tax news
2 min read

Massachusetts Enacts Provision for Accelerated Sales Tax Remittance

By Robert Dumas on Tue, Jan 26, 2021 @ 11:00 AM

Massachusetts has joined the ranks of states that have provisions for accelerated remittance of sales tax.

Topics: sales tax compliance sales tax news
3 min read

Sales Tax and Your 2021 Growth Goals

By Robert Dumas on Thu, Jan 21, 2021 @ 11:00 AM

If your online company looks to expand its interstate sales in 2021, know one thing: Your plan involves risks and new responsibilities. The key is learning how to manage both, as sales tax non-compliance or errors can bring stiff penalties.

Topics: sales tax telecom tax
3 min read

How to Choose the Right Sales Tax Provider

By Robert Dumas on Tue, Jan 19, 2021 @ 11:00 AM

Picking the right provider to handle your business’s sales and use tax compliance is a big decision.

Topics: sales tax telecom tax
3 min read

Telecommunications Tax Exemptions

By Robert Dumas on Thu, Jan 14, 2021 @ 11:00 AM

TaxConnex works with a lot of telecommunications service providers that are new to the business. Many are existing MSP’s (Managed Service Providers) or IT management companies that would like to expand their service offering and become “stickier” with their clients.  They may have infrastructure in place to support the sales tax requirements of their existing business, but the telecommunications service presents a different set of issues.

Topics: sales tax telecom tax
1 min read

Top Sales Tax Rules to Help Your Business Remain Compliant

By Robert Dumas on Tue, Jan 12, 2021 @ 11:00 AM

Sales tax compliance is complex, there’s no doubting it. While many hoped that the Supreme Court decision in South Dakota vs. Wayfair would make things more clear, it did quite the opposite.

Topics: sales tax compliance south dakota vs. wayfair
4 min read

Understanding the Taxability of Your Products and/or Tech Services

By Robert Dumas on Thu, Jan 07, 2021 @ 11:00 AM

If you were to read our 5 Steps to Sales Tax Compliance, or any guide on maintaining sales tax compliance, understanding the taxability of your products and/or services would be one of the first steps.

Topics: sales tax compliance taxability
3 min read

Understanding Sales Tax Obligations with Drop Shipments

By Robert Dumas on Tue, Jan 05, 2021 @ 11:00 AM

As if sales tax nexus and taxability rules weren’t confusing enough, throw in marketplace facilitators and drop shipments and it’s easy for a business of any size to want to give up on sales tax compliance.

Topics: taxability retail
3 min read

Alleviate Stress on Your Staff in 2021

By Robert Dumas on Thu, Dec 31, 2020 @ 11:00 AM

Your employees (like all of us) have more than enough headaches on all fronts headed into the new year. Back in April employees surveyed said that the pandemic is the most stressful time of their entire career. Now more than ever you owe it to your people – and to your business – to ease their problems when you can.

If you handle sales tax compliance in house, you’ve got your employees handling an unbelievably complex business function – and with 65% of businesses planning to grow across state lines* in the coming year, it may be more than they can manage.

Topics: sales tax compliance taxability
2 min read

Key Pieces of Your Exemption Certificate

By Robert Dumas on Tue, Dec 29, 2020 @ 11:00 AM

An exemption is an exception that eliminates the need to pay sales tax. The presumption is that all sales of tangible personal property are taxable unless specifically enumerated. The purchaser has the responsibility for determining whether a sale is exempt from tax. If the purchaser does not submit a valid exemption certificate to the business, the business must assess and collect the sales tax from the purchaser. The responsibility to determine the validity of the exemption certificate resides with the business. Without this exemption certificate, the state or jurisdiction in which you are registered will expect you to have collected sales tax. 

Topics: sales tax taxability
4 min read

Sales and Use Tax in 2020: A Look Back

By Robert Dumas on Tue, Dec 22, 2020 @ 11:00 AM

Someday people will probably use a lot of words to describe 2020. “Un-eventful” won’t be one of them.

The year’s ongoing pandemic affected almost every aspect of life – including, and in no small way, sales tax, which was already an area that has seen unprecedented change since the Supreme Court’s Wayfair decision in 2018.

Add to that, jurisdictions that are worried about how lockdowns have affected their tax revenue and you have a tumultuous year.

Here’s a look back at some of the year’s developments. 

Topics: sales tax sales tax news
2 min read

Managing More with Less

By Robert Dumas on Thu, Dec 17, 2020 @ 11:00 AM

With nearly 50 million Americans losing their jobs earlier this year and 11 million still unemployed nearly 10 months after the pandemic began, the reality of being forced to do more with less is being felt in every corner of almost every company, including the finance department. Hiring freezes and budget restrictions have left many finance teams struggling to keep up.

Topics: sales tax compliance sales tax
3 min read

Calculation and Compliance: The Importance of Having Both in Your Sales Tax Process

By Robert Dumas on Tue, Dec 15, 2020 @ 11:00 AM

We understand that sales and use tax may not be your biggest priority, 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 sales tax calculation
2 min read

Recent Cases Show You Shouldn't Mess with Sales Tax Obligations

By Robert Dumas on Thu, Dec 10, 2020 @ 11:00 AM

States may be getting tougher on sales tax delinquents as the pandemic drags on and tax revenues, in many places, take hits. Just ask Fiorella’s Landscaping in western New York.

Topics: sales tax compliance sales tax
2 min read

5 Myths About Voluntary Disclosure Agreements

By Robert Dumas on Tue, Dec 08, 2020 @ 11:00 AM

Voluntary disclosure agreements (VDAs) can be an effective way to mitigate prior period sales tax exposure. They can also come with a lot of misconceptions.

Topics: sales tax compliance VDA
1 min read

TaxConnex Releases New Research that Reveals Top Concerns Among Financial Leaders Responsible for Sales Tax in 2021

By Robert Dumas on Thu, Dec 03, 2020 @ 11:00 AM

Alpharetta, GA -  TaxConnex, Inc today released the results of a new survey finding that the increasing sales tax complexities, growing nexus, limited resources and additional audits are among the top worries of financial professionals in 2021.

Topics: sales tax compliance
2 min read

6 Benefits of Outsourcing Sales Tax Compliance

By Robert Dumas on Tue, Dec 01, 2020 @ 11:00 AM

 

In light of the Wayfair decision, and due to recent new hires in a new state or increased online sales, you’ve determined you meet sales tax nexus thresholds outside of just your home state and now you have to collect, file, and remit sales tax in multiple states. What a headache. To make matters worse, this is a compliance issue, so you must act. What do you do?

Topics: sales tax compliance
3 min read

Recent Happenings and Challenges in the World of Sales Tax

By Robert Dumas on Tue, Nov 24, 2020 @ 11:00 AM

One state’s efforts to join the Sales and Use Tax System (SUTS) and another state’s lawsuit against a world-famous auction house highlight recent challenges in the sales tax world.

Topics: sales tax compliance sales tax news
5 min read

Sales and Use Tax FAQs - Risk and Liability

By Robert Dumas on Thu, Nov 19, 2020 @ 11:00 AM

When it comes to managing sales tax compliance, for most businesses there are really three ways you can do it.

  1. Attempt to manage everything in-house
  2. Outsource sales tax compliance
  3. Do nothing and roll the dice.

So what happens if you attempt to manage the process in-house but lack the expertise and bandwidth to manage it effectively? Or what if you do nothing and decide to roll the dice? What are the risks associated with non-compliance? We’ve compiled some of the top questions we get from clients on the risk and liability of sales tax non-compliance.

Topics: sales tax compliance VDA
8 min read

4 Steps to Monitoring Your Sales Tax Obligations During the Holiday Shopping Season (and Beyond)

By Robert Dumas on Tue, Nov 17, 2020 @ 11:00 AM

It’s that time of year – holiday shopping is in full swingWhile the pandemic has continued to wreak havoc on retail locations, online sales continue to skyrocketSo while you’re busy with closing out your year, hopefully on a higher note, don’t forget about your sales tax obligations or you could wind up with a big lump of coal.

Topics: sales tax nexus sales tax compliance
3 min read

Complexities of Sales Tax: Technology

By Robert Dumas on Thu, Nov 12, 2020 @ 11:00 AM

Technology companies, and specifically software companies, have always had challenges related to managing sales tax. Understanding where they have a physical presence as well as the varying taxability rules associated with their products and services was complex. But with the proliferation of Software-as-a-Service (SaaS) as a delivery mechanism and Wayfair, the sales tax landscape has become exponentially more complex.

Tech companies – especially those dealing in downloads of software and (SaaS) delivery – can protect themselves if they understand key terms and processes.

Topics: sales tax nexus sales tax taxability
4 min read

Sales Tax Automation Mistakes

By Robert Dumas on Thu, Nov 05, 2020 @ 11:00 AM

This article was written for the Atlanta Business Chronicle Leadership Trust. To see the original post, click here

If your business has an obligation to collect and remit sales tax, then you know how complex the process can be. Whether you manage it all internally, work with a CPA, or use an outsourced provider or technology, you know that there are many moving parts. Automating part or all of the sales tax process is sometimes necessary to maintain compliance. However, in my experience, sales tax automation can be counterproductive in certain situations.

Topics: sales tax sales tax calculation
5 min read

State Sales and Use Tax Update

By Robert Dumas on Tue, Nov 03, 2020 @ 11:00 AM

There’s always something changing or new going on in the world of tax, especially sales tax. Here’s a review of some of the changes and updates that were announced in the last few months.

Topics: sales tax compliance sales tax news
3 min read

Complexities of Sales Tax: Construction

By Robert Dumas on Thu, Oct 29, 2020 @ 11:00 AM

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
7 min read

Sales Tax FAQs

By TaxConnex on Tue, Oct 27, 2020 @ 11:00 AM

We can’t say it enough – sales tax is complex. Whether you outsource aspects of the process or manage it all in house, there are a lot of moving parts and nothing seems to stay the same for long.

We’ve compiled some of the top questions we get from clients on sales & use tax. Part 1 of these questions was on sales tax and business services. Keep reading for some of our more introductory questions we get asked on a daily basis.

Topics: sales tax nexus sales tax
9 min read

Pitfalls of Sales Tax for the Manufacturing Industry

By Robert Dumas on Thu, Oct 22, 2020 @ 11:00 AM

“Manufacturing” for sales tax purposes is often defined as a physical application of materials and labor to change the characteristics of tangible personal propertyMakes sense, but does that mean your business is exempt? Not so easy. Every state has nuances on how sales tax applies to the manufacturing process and the various equipment and materials that are used and consumed.  There are many gray areas that can create signification exposure, or savings, for your business.   

Topics: sales tax compliance taxability
4 min read

Correctly File Your Sales Tax Returns in Four Steps

By TaxConnex on Tue, Oct 20, 2020 @ 10:00 AM

When looking at all that goes in to maintaining your business’s compliance in sales tax, the filing of your returns is often seen as one of the easiest tasks. Yet, that doesn’t mean there aren’t things that can trip you up in the process.

Topics: sales tax compliance sales tax filing
5 min read

Top Sales Tax Terms To Be Aware Of

By TaxConnex on Thu, Oct 15, 2020 @ 11:00 AM

As if understanding your nexus obligations wasn’t confusing enough, you throw in words and phrases like marketplace facilitator, TPP, tax situs and economic vs. physical nexus and even the most advanced finance professionals can be thrown for a loop.

Topics: sales tax compliance sales tax
4 min read

Sales Tax and Business Services – Your Top Questions Answered

By TaxConnex on Tue, Oct 13, 2020 @ 11:00 AM

Companies that perform services often see themselves as tax exempt, and in many cases that is true, but there are certain states and situations in which that is not the case. Gain a better understanding of your sales and use tax obligations with these frequently asked questions we have received from businesses that provide services.

Topics: sales tax nexus sales tax compliance taxability
4 min read

Can IP Addresses Be Used to Assess Sales Tax?

By TaxConnex on Thu, Oct 08, 2020 @ 11:00 AM

The short answer: maybe. What’s an IP address and how can it influence your company’s need to collect and remit sales tax to states?

When your customers access your website and make purchases, the customer is often providing a billing and/or shipping address which can be used to determine where sales tax applies. In certain online transactions, these physical addresses may not be available. As a result, an Internet Protocol (IP) address may be all that’s available. The IP address of the computer being used to access your website can be identified and via third party databases, the IP address can be mapped to a physical address for purposes of applying sales tax.

Topics: sales tax compliance taxability
4 min read

The Sales Tax Requirements of Selling Into Canada

By TaxConnex on Thu, Oct 01, 2020 @ 11:00 AM

U.S. sales tax post-Wayfair 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? Do the same rules apply, is it easier to understand?

Topics: sales tax compliance
3 min read

Latest Developments in State and Local Sales Tax

By TaxConnex on Tue, Sep 29, 2020 @ 11:00 AM

In Alabama, rising pandemic-related online shopping has been a “life saver” for the state’s municipal governments and a “financial vaccine for Alabama’s counties,” the state said. The state’s SSUT has taken in more than $309 million overall during the current fiscal year – almost double the tax generated during all of fiscal 2018-19. The number of online retailers in the program has also grown from fewer than 200 in 2017 to more than 2,900 today.

Under the SSUT formula, 50 percent of all revenues from online sales from companies participating in the program go to the state. The legislation also expanded the program to allow out-of-state online sellers to join the SSUT even if they have an affiliate with a brick-and-mortar presence in Alabama.

The Decatur, Ala., city council was also recently set to vote on giving a quarter of online sales tax revenue to the city’s schools in 2021. (A portion of the funds must support child-related nonprofits.) The city expects to get about $2 million in 2020 and again in 2021 from online sales tax.

Topics: sales tax compliance sales tax news
3 min read

5 Steps to Put Your Business on the Right Track to Maintain Sales Tax Compliance

By TaxConnex on Thu, Sep 24, 2020 @ 11:00 AM

It has been two years since the US Supreme Court passed the Wayfair decision which paved the way for states to enact economic nexus rules. At this point, the majority of finance professionals understand the need to maintain sales & use tax compliance. Most businesses have some type of process in place although it may not be comprehensive enough. What do you do when you discover you are out of compliance in some states? Or you acquire a business that has done very little to manage sales and use tax compliance?

In this blog, we’ll outline 5 steps that will put you on the right track to have your business prepped to maintain sales tax compliance.

Topics: sales tax nexus sales tax compliance
4 min read

Taxes in the Telecom World: Misconceptions and Advice

By TaxConnex on Tue, Sep 22, 2020 @ 11:00 AM

This article was written for the Atlanta Business Chronicle Leadership Trust. To see the original post, click here

Taxes are an integral part of the telecom world. Taxes, fees and government surcharges on telecommunications services increased from 19.1% to 21.7% in 2019 (even as average monthly bills for consumers actually dropped).

In talking with countless telecommunications service providers about their various tax and regulatory requirements, there are some recurring themes I hear that can be troubling. These recurring issues tend to pop up with new VoIP service providers. Perhaps they’ve been in business for years previously — and they may have even had various sales tax obligations historically — but they are now offering VoIP services that expose them to a completely different set of tax and regulatory obligations.

Topics: telecom tax taxability
3 min read

State Benefiting from Economic Nexus During the Pandemic

By TaxConnex on Thu, Sep 17, 2020 @ 11:00 AM

States are still reeling in sales tax deficits brought on by the economic downturn during the pandemic, but the addition of economic nexus has appeared to have somewhat alleviated the deficits. States are starting to see an increase in online sales tax collections as more and more people remain online for work and shopping. 

Topics: sales tax south dakota vs. wayfair
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