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.

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.

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.

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.   

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.

What’s new in May for state sales and use taxes

The exploding world of eCommerce has put a new player front and center: the marketplace facilitator.

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.

Given the complexity that already exists regarding sales tax, it’d be great if states were the only jurisdictions that levied them.

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.

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. 

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.” 

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.

Online sellers hear an endless amount these days about “marketplace facilitators.” What are they? How can they help you? And how can they hurt?

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...

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.