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Sales tax risk: What to ask (part 2)

TaxConnex

Assessing a company’s sales tax risk and exposure starts (and maybe ends) with the right questions. As we saw in a previous blog, these questions cover a range of topics and hinge on knowing many sales tax terms. Are you comfortable with your sales tax nexus footprint? Are you comfortable with your sales tax nexus footprint?

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Sales Tax on Shipping: When Does it Apply?

TaxConnex

It’s one of the most important aspects of an online business – and one of the wackiest when trying to determine whether sales tax applies or not. Many states say that when the contents of a shipment are taxable, so is the shipping cost; similarly, when items in a shipment are exempt from sales tax, so is the cost of shipping.

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Can an eCommerce platform alone manage sales tax?

TaxConnex

The 2018 Supreme Court decision in South Dakota vs. Wayfair opened the floodgates for economic nexus throughout the U.S. Usually all retail sales of tangible personal property (TPP) are taxable, but many states have started to tax services. They also take the burden of sales tax obligation off the seller.

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3 things to remember about economic nexus

TaxConnex

This June marked 4 years since the landmark Supreme Court decision that launched economic nexus, South Dakota v. Wayfair, Inc et al , but many businesses are still trying to figure out how to manage sales tax obligations brought on by this decision. All 45 states with state-wide sales tax now have economic thresholds set.

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Sales Tax and Business Services – Your Top Questions Answered

TaxConnex

Companies that perform services often see themselves as tax exempt, and in many cases that is true, but there are certain states andsituations 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.

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Proposed Senate Legislation to Relieve Sales Tax Compliance Burden

Withum

After receiving complaints from small business owners, the Senate Finance Committee held a hearing on June 14th to review the effect of the 2018 Supreme Court decision in South Dakota v. In 2018, the Supreme Court reviewed and upheld the lower court’s decision in South Dakota v. State and Local Tax Services.

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Sales Tax Issues for Online Retailers

Withum

It is no surprise that states are seeing significant growth in sales tax revenue, a trend fueled by changes in consumer spending during the pandemic. The third reason for higher sales tax revenue was the Wayfair decision in which the Supreme Court expanded the physical nexus requirement to include economic nexus (e.g., 2080 (2018).

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