This is a reposting of blog from June 2016. Oldie but goodie.
Sometimes it’s difficult to find something new and exciting about sales tax and sales tax compliance to share. (Can you imagine not having anything exciting to say about sales tax?)
So…I have decided to share with you some of the “not so new and exciting things” (although extremely important) we have learned about sales tax and sales tax compliance in the 20+ years we have been in this business:
- Sales tax is the ugly step child of all tax disciplines (no offense to any step children intended)
- Sales tax is not as sexy as income tax (only a CPA could think income tax is sexy)
You never want to spend the money necessary to be 100% right with sales tax, but you always want to spend as much money as necessary not to be 100% wrong (read it again and it will make more sense)
- Everyone thinks they know a lot more about sales tax than they really do (just because it is on the internet does not mean it is true)
- Sales tax nexus is the most misunderstood sales tax concept (nexus is not just direct physical contact)
- No one thinks about sales tax until a major issue surfaces (crisis management is rarely a good strategic approach for sales tax)
- Sales tax compliance adds no value but can create tremendous financial risk if ignored or mismanaged (have you heard of penalties and interest?)
- Sales tax compliance is not ‘rocket science’ but don’t let anyone tell you it is easy (regardless of what a salesperson may tell you…there is no ‘easy’ button)
- People can experience a tremendous amount of pain, discomfort and risk with a sales tax compliance outsource solution and remain unwilling to make a change (dysfunction is the new normal for some people)
Sometimes bullet points and humor are best. I understand humor is relative, but remember, I’m a CPA.