Sales tax and due diligence in an M&A
Those involved in mergers and acquisitions often get understandably excited about the deal,...
Depending on where you are in the supply chain, managing exemption certificates is crucial. For example, a manufacturer that sells to other manufacturers will need to collect and validate exemption certificates from their customers.
Understanding whether your purchases should be taxable or exempt can be confusing depending mainly on how the product is used. Are the purchases used in the manufacturing process (raw materials or components) or consumed within the business (office or shop supplies)? Each situation can have different impacts
Manufacturers that sell to end users of their products, will need to track nexus and the taxability of their products or services and apply sales tax as applicable. They also need to pay special attention to states who track nexus by gross sales (which is the majority) rather than retail, as they must consider their wholesale sales in combination with their retail sales when determining if they've met thresholds.
Learn more by accessing our economic nexus threshold map here →
Listen to why our client, Mark Kost of Force of Nature chooses to UPSOURCE their sales tax management to TaxConnex!
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We started our business six years ago, very small and lean. As the CFO and founding partner, I am still the only individual responsible for accounting and finance. I needed a place to go that would take care of everything else, so I could focus on the operations and that’s where I found TaxConnex.
Those involved in mergers and acquisitions often get understandably excited about the deal,...
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