States are facing budget deficits so—surprise!—many are tinkering with their sales and use tax laws and beefing up enforcement in order to increase their tax revenue. Where does this leave you? Most likely scrambling to make sense of it all.
A big issue that everyone is grappling with today is that the ways in which Americans now buy, sell and consume goods and services has changed beyond what’s defined by traditional state tax laws. For example, how should the digital delivery of software, books and other media and streaming services be taxed? Should services, which have outpaced goods in terms of consumer spending, be taxed more consistently? What about the outdated federal internet sales legislation—is Congress ever going to act on this?
Driven by their budgetary problems, many states are responding to these questions by getting aggressive. They’re hiring more auditors. They’re expanding the definitions of when a purchase triggers an obligation to collect and remit sales tax to that state (i.e. the “nexus”). And they’re increasing tax rates, applying sales tax to more products and services, and more.
Are you keeping up with it all?
Given how quickly the rules change, there’s a good chance you could use some help in this area. Which is why we’ve partnered with Avalara, the leader in cloud-based transactional tax automation software for compliance in sales tax, VAT, exemption certificates and other transactional taxes.
To help you understand the new landscape, I urge you to download Avalara’s today. This free Guide provides insight into what’s new and what’s changed at the state and federal levels, addresses 10 common sales tax compliance challenges, and offers tips for staying on top of it all. What are the implications of drop shipping? How is nexus determined? What do you need to know when managing exempt sales? And much more.
Do you need to shore up compliance?
The easiest way to get a handle on compliance is through tax automation software like Avalara’s AvaTax, which calculates guaranteed-accurate rates in every one of the over 12,000 jurisdiction in the U.S. We can help you get this in place, fully integrated with your QuickBooks/Fishbowl system.
The 2017 Sales tax Survival Guide is a must-read reference for anyone who is responsible for tax compliance in their business.