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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
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
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
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
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
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
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

Complexities of Sales Tax: Leasing

By Robert Dumas on Tue, Nov 10, 2020 @ 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

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
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

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