Sales tax concerns if you sell through multiple channels
Businesses have new ways to sell today, as marketplaces such as Amazon, TikTok and the business’s...
The importance of sales tax compliance for businesses is something that many people don't fully understand. Compliance with sales tax is necessary to avoid financial penalties, interest charges and comply with state and local laws. Understanding when and where you need to collect sales tax, how to determine the sales tax due, determining which exemptions apply to you, where to register for sales tax, and filing the applicable returns are all crucial parts of understanding what you need to do.
Sales tax is a tax on the sale of most goods and some services. The purpose of sales taxes is to generate revenue for state and local governments. Sales taxes don't apply to all transactions, though, typically items to be taxed are tangible personal property (TPP), but even that can change per state. Furthermore, certain non-tangible items are also subject to sales tax, especially in the digital world, where digital goods and software are subject to sales tax in many states. It is important to understand the taxability of your products and services to comply appropriately. It is also important to understand where you have an obligation to collect sales tax. It only applies to where you have a substantial connection to a state or taxing jurisdiction. Understanding this connection (referred to as nexus) is another key to your compliance that must be monitored and understood.
Many businesses manage the complexities of sales tax in-house. Still, it can be a bit much to remain compliant for businesses without a specific tax professional on staff or the ability to keep up with all the tax changes and their other job priorities. Outsourcing to a sales tax service provider could be your solution!
These services help by eliminating the extra work of sales tax compliance from your plate because it takes care of all the details for you, giving businesses and financial professionals one less thing to worry about.
If you're tired of worrying about managing sales tax compliance on your own, then an outsourced sales tax provider may be your best solution. Sales tax service providers perform tasks designed to help you understand and comply with the sales tax laws that apply to your company by managing any sales taxes you collect and ensuring you’re always on top of any updates or regulation changes without having to worry about them yourself.
There are many benefits to outsourcing but below are some key reasons many businesses decide to outsource sales tax compliance:
Don't want to manage all this on your own?
TaxConnex actually removes that burden and liability. Let us manage the hard stuff so you and your team can get back to the important stuff. Get in touch with one of sales consultants about how to UPSOURCE to your sales tax compliance!
Businesses have new ways to sell today, as marketplaces such as Amazon, TikTok and the business’s...
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