Sunday, October 6, 2019

Sales Tax Compliance

** This is a sponsored post which I will be compensated for**

As a business owner, you might be unsure where to start as far as sales tax filing goes I would recommend TaxConnex provides a complete set of highly customer intimate services including end-to-end compliance, data analysis, remittance, reporting, notice resolution, question handling, proactive suggestions, straightforward advice, and audit support. TaxConnex is your “on-call” Sales & Use Tax Department. They also offer the following services Sales Tax Nexus
Sales Tax Audit Defense and Support, Product/Service Taxability, Voluntary Disclosures and Amnesty. They will make sure you follow sales tax compliance as you will need to prepare and file using sales tax software and do your sales tax filing for you. Depending on which state you are in will determine your sales tax regulations as each state is different depending on the type of nexus so they take the headache of figuring this all out for you. I know a lot of states have a sales tax act is tax paid to a governing body for the sales of certain goods and services. 

Usually, laws allow the seller to collect funds for the tax from the consumer at the point of purchase.
Are you aware of the Wayfair act? This was brought about as a business in a state that makes a profit to be able to charge sales tax. The Wayfair sale tax case happened on June 21, 2018, The United States Supreme Court ruled 5-4 in South Dakota v. Wayfair that states can mandate that businesses without a physical presence in a state with more than 200 transactions or $100,000 in-state sales collect and remit sales taxes on transactions in the state. This decision overturned the Court’s 1992 decision in Quill v. North Dakota and 1967 decision in National Bellas Hess.
Wayfair Sales Tax Nexus represents a physical connection between an out-of-state business and a particular taxing jurisdiction which makes the out-of-state business responsible for collecting and remitting sales tax on their transactions.  Having a physical office or an employee based in a particular state is a clear-cut example of sales tax nexus.  However, there are many more subtle activities that could also trigger sales tax nexus that could represent a risk to your business:
 Wayfair nexus breaks it down easy for you as they say almost all states now require companies that have nexus a presence or a level of sales that triggers legal obligation, to collect and remit sales tax. These obligations potentially affect many industries, from click-and-buy retail to distribution to software. You need to know where, when and how to collect these taxes related to Wayfair or face potential penalties. The wayfair tax policy enables an entirely new revenue stream. Do you think this potential revenue will be left on the table? The answer is an emphatic "no!" 25% of the states thought South Dakota might prevail and already had economic nexus legislation in place. And while the rest of the states may have been surprised they did not sit around contemplating their next steps.

No comments:

Post a Comment

Sunshine & Glitter All The Sparkle SPF 30 Sunscreen Mother's Day Gift Guide 2024

  Now that the weather is finally getting sunny I can test out some Sunshine & Glitter All The Sparkle SPF 30 Sunscreen. ALL NEW! The A...