Are subscriptions taxable? Depends on what they’re for and where they’re delivered.

TaxConnex is excited to announce that we have launched a new app for Shopify users to easily pull data out of Shopify for a better returns filing process. The new app, eConnex, gives Shopify users a simple way to get their sales tax data out of Shopify and upload it into TaxConnex's Client Connexion for easy returns filing.

Nonprofit organizations are often thought to be exempt from sales taxes, but is that correct?

Online selling of products and services triggers sales tax obligations today like never before – and has ever since the Supreme Court’s 2018 Wayfair decision unleashed economic nexus on e-commerce merchants nationwide.

Online selling of products and services has always been in the vanguard of sales tax obligations. The situation has only gotten more complicated in the five years since the Supreme Court unleashed economic nexus with the Wayfair decision.

Sales tax automation has come a long way since the Quill vs. North Dakota case in 1992. Now, even the smallest multi-state businesses and startups have access to sales tax automation options that lower costs and ease the burden of compliance. AI is even making it’s way into the sales tax world, but how much do you trust an automated bot or machine with your sales tax obligations?

Construction contractors have a tough job these days, given labor shortages, supply-chain headaches, and mushrooming regulations. If you’re in this industry, the last thing you need added to your load is sales tax.

When it comes to sales tax, “manufacturing” is often defined as a physical application of materials and labor to change the characteristics of tangible personal property (TPP). Seems clear, but what about your tax obligations and exemptions?

Every state has nuances on how sales tax applies to the manufacturing process, equipment and materials. These gray areas can create big exposure for your business.

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.

Your online business is painfully aware of tax deadlines for income, payroll, property and other local taxes. Sales and use taxes have their deadlines, too – a dizzying number to follow, potentially with bad consequences if you miss even one.

Valid exemption certificates from your customers are critical in managing your overall sales tax risk. Yet a surprising number of companies have inadequate processes to receive, validate, maintain, and update exemption certificates.

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.

It seems like a simple part of selling online. You sell an item to a customer, they decide for whatever reason to return it, and you give them a refund. Simple.

Except when sales tax becomes involved.

Sales tax is meant to be a pass-through tax and thus one that should have minimal impact on a company’s bottom line. The sales tax is collected by businesses and “passed-through” to the taxing jurisdictions. Of course, there is cost associated with managing this compliance obligation; however, the costs of not managing the compliance process are significantly greater. If you fail to collect and remit the applicable sales tax when you have an obligation, under audit a jurisdiction will assess the tax due + a penalty + interest. This then becomes a bottom line hit unless you can recoup from your customers.

Maintaining current, valid exemption certificates is critical in managing your overall sales tax risk. Under audit, an otherwise exempt sale will be deemed taxable without such documentation from a customer – and just a few missing certificates can result in large penalties and interest.

We hear a lot about nexus and various thresholds but not as much as about tax situs.