TaxConnex Sales Tax Blog
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TaxConnex provides sales tax outsourcing, sales tax consulting and VoIP tax service to businesses of all sizes with a focus on technology companies, small and mid-sized businesses, and VoIP providers. Key blog topics - Sales Tax, Audits, Compliance, CPA, Retail and Taxability.
TaxConnex Sales Tax Blog
2d ago
We are at the end of Q1 of 2024 and continue to discuss how to ensure your business is set up to get sales tax right in 2024. If you’re like the over 49% of businesses who participated in our annual sales tax trends survey and are unsatisfied with the way you are managing sales tax, then you’re in the right place.
The complexities surrounding managing your sales and use tax obligations continue to evolve and perplex businesses of all sizes. More businesses than ever have a multi-state sales tax obligation and are trying to find the best way to balance their cost of compliance versus the r ..read more
TaxConnex Sales Tax Blog
5d ago
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.
Amazon still liable. The Court of Appeals of South Carolina has affirmed a state Administrative Law Court (ALC) finding that the online retail giant remains liable for eight figures in unpaid sales tax on third-party sales from 2016, interest and penalties.
After initial incentives from South Carolina for an Amazon investment in fulfillment centers 13 years ago, the company was to have begun collecting South Carolina sales tax in 2016. It did, but the South Ca ..read more
TaxConnex Sales Tax Blog
2w ago
The fear of a sales tax audit from one of the country’s thousands of tax jurisdictions is legitimate. Audits can disrupt your business and potentially cost you thousands of dollars.
How should you prepare for a sales and use tax audit?
A lot of worry
The latest results of our annual survey of top finance executives regarding their thoughts and experiences in managing sales tax showed once again that audits are top of mind.
Even though most respondents (85%) had already gone through a sales and use tax audit, there’s a growing lack of confidence in audit preparedness in more than one in every f ..read more
TaxConnex Sales Tax Blog
2w ago
Since the first adding machine showed up on counters to help shopkeepers tack on the correct sales tax, automation has been part of compliance. Now the buttons and the lever have given way to behind-the-scenes software and automatic functionality.
Good thing, too, as sales tax has evolved beyond a static percentage to involve thousands of tax jurisdictions and ever-changing calculations. But does the new automation always keep up?
Dependency and worry
Automation figures strongly in how companies stay ahead of their sales tax obligations, according to results from the third annual Taxconnex sur ..read more
TaxConnex Sales Tax Blog
3w ago
The non-fungible token (NFT) remains a sizzling commodity. These digitized assets denote ownership of such collectibles as sports cards and artwork, even designer digital footwear.
Two signs of the size of the sizzle: The online NFT platform OpenSea claims to be worth more than $13 billion. Some NFTs alone on OpenSea have sold for millions and in recent years the average sales price of an NFT (an admittedly volatile commodity) jumped from about $150 to $4,000.
That’s a lot of tax potential, and the feds have started to notice. With an eye to pinning down taxability, the IRS proposes to ..read more
TaxConnex Sales Tax Blog
1M ago
Your sales tax obligations depend on knowledge and that knowledge often resides in a professional tax specialist (usually an accountant) who helps your company meet its sales tax obligations.
This is a complicated time for sales tax obligations – and a difficult time to hire an accountant to manage it. Accounting is beset by a triple threat: a looming wave of retirement, a lingering great resignation of younger professionals and a talent pipeline of new graduates that’s slowing to a trickle.
Where does that leave you as you try to navigate your divergent sales tax obligations in the thousands ..read more
TaxConnex Sales Tax Blog
1M ago
Not long ago, clicking a computer mouse to buy something was an idea of science fiction. Today, of course, e-commerce is how a significant amount of shopping takes place in general. Capital One reports that global e-commerce retail sales will hit some $6.91 trillion this year, up 9.5% from total e-commerce retail sales in 2023.
Projections indicate that value will increase to $8.03 trillion in 2027. U.S. retail e-commerce sales for 2023 through the third quarter were $833 billion, up 7.6% from the same period in 2022. U.S. retail e-commerce sales is expected ..read more
TaxConnex Sales Tax Blog
1M ago
At the beginning of January we announced the release of our annual sales tax survey. This year’s results provided insights into how businesses are managing the complexities of sales tax and how they are being impacted by economic and regulatory structures. The nationwide survey, conducted by In90Group in November of 2023, is composed of responses from 100 top finance professionals in a variety of industries regarding their thoughts and experiences in managing sales tax. 5 of our key findings are below:
1. The shift toward the use of internal resources vs. software applications to manage ..read more
TaxConnex Sales Tax Blog
1M ago
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.
B&O responsibility: A Washington State appellate court has found two sellers responsible for sales tax and business and occupation (B&O) tax on sales made through Amazon’s Fulfillment by Amazon (FBA) program.
The decision in the case, the latter of which is the consolidated S&F Corporation and Orthotic Shop Inc. v. Department of Revenue, dealt with tax periods prior to Washington’s implementation of marketplace rules requiring marketplace ..read more
TaxConnex Sales Tax Blog
1M ago
To help financial leaders better understand what their peers are doing when it comes to sales and use tax in 2024, TaxConnex® conducted its fourth annual sales tax survey in November of 2023. More than 100 financial leaders from different industries and from a wide range of sizes responded. Their responses are included in the following blog.
For the vast majority of organizations, managing the minutia of sales tax obligations can be described as clunky, cumbersome, and risky, with each state having its own rules that are constantly changing.
The myriad of approaches and solutions a ..read more