Sales Tax Institute’s Post

A New York Department of Taxation and Finance advisory opinion involving a company selling products that provide mobile/web analytics of user online behavior concluded that sales receipts of such products are subject to New York State and local sales tax, because its services of gathering and storing customer data, and then using the data to prepare customized reports are taxable information services. #informationservices #ny #tax #taxes #salestax #webanalytics

When it comes to sales tax compliance and implementing efficient internal practices, it can be time-consuming and complex. However, having robust internal controls can lead to better, more efficient strategies and long-term benefits. One of the most critical aspects is to ensure that the invoice is well-presented, and contains all the necessary information for sales tax compliance. For instance, if you operate in the software industry, selling different types of software and services, some taxable and some exempt, many states would require you to separate out the non-taxable items from the taxable ones. Failing to do so may lead to you losing those exemptions. Furthermore, if the sales taxes are not collected from the customer, you would end up paying the sales taxes from the business. It's also crucial to include all information on the invoice, such as the complete customer location. This is because US sales tax is based on destination and the rates applied on the invoice depend on the customer's location. For e-commerce businesses, businesses selling in many locations or online sellers, keeping records and filing returns for states that require different tax rates for each location (city and/or county) can be a challenging task. It can make a significant difference to have all the necessary information readily available and to avoid any non-compliance consequences.

Our new Tax Portal offers a user-friendly interface and a host of features that will revolutionize the way you handle your taxes: *Secure Document Upload: Easily upload your tax documents securely from any device, ensuring your sensitive information is always protected. *Document Storage: Access your tax documents anytime, anywhere, with our secure document storage feature, eliminating the hassle of searching through physical files. *Real-Time Messaging: Communicate effortlessly with our team through the portal's integrated messaging feature. Whether you have questions, need clarification, or simply want to stay updated, we are just a message away. *Online Payment Processing: Enjoy the convenience of paying for our services directly through the Tax Portal. With our secure online payment system, you can easily settle invoices and manage your finances with ease. *Electronic Signatures: Sign documents online with our electronic signature feature, streamlining the process and saving you valuable time. To start using our Tax Portal today, simply answer the survey question below to opt in and we will email you an activation link. Should you have any questions or require assistance with the Tax Portal, please do not hesitate to contact us at our office number (561) 686-8666. Click Here: https://lnkd.in/gZpmPpc3

Exciting news! Your customers no longer need to contact you for their tax invoices. They can now download them directly from their customer accounts. They can just log into their account and click More Actions → Download Tax Invoice next to their order. Learn more about customer accounts: cutt.ly/jwHwga5d

Attention Business Owners! Are you navigating the complex world of sales and use tax compliance? Let's break it down: What You Need to Know: 🔹 Sales Tax: Charged on goods/services at point of sale (4-10% typically) 🔹 Use Tax: Applies to out-of-state purchases used in your state Why It Matters: 💼 Financial Health: Avoid penalties up to 10% of tax liability ⚖️ Legal Protection: Stay compliant, stay safe 🏆 Business Reputation: Build trust with proper practices Who Needs to File? ✅ Retailers of physical products ✅ Service providers (for taxable services) ✅ Online businesses with state nexus ✅ Seasonal sellers (e.g., craft fairs) Red Flags You Need to File: 🚩 Physical presence or employees in multiple states 🚩 High sales volume (e.g., $500k+ annual tax liability) 🚩 Selling taxable goods/services, including digital products 🚩 Cross-state sales 💡 Pro Tip: Even if you're a small business, don't assume you're exempt. Check your local regulations! Feeling overwhelmed? You're not alone. Tax compliance doesn't have to be a nightmare.🤔 Question: Do you want expert help navigating sales & use tax compliance?👇 Dm "YES" for a free consultation..

Knowing when to collect sales tax on out-of-state sales can be tricky. Here are some helpful tips. Essential Software Solutions Avalara

A common belief is that sales tax management is a straightforward process, with businesses simply needing to add rates and collect them. However, the reality is that managing sales tax can be complex and nuanced, with various factors influencing accuracy and compliance. Many overlook how changes in tax laws, diverse rates across jurisdictions, and the necessity for precise product categorization can complicate what seems like a simple task. This gap in understanding often leads to under-collection or over-collection of taxes, resulting in stress and potential legal issues down the line. To better align with reality, it's essential to embrace a mindset shift. Recognize that sales tax management requires ongoing attention, knowledge, and proper tools. Here are a few actionable steps to help in this transition: 1. Take the time to thoroughly set up your sales tax settings in your financial management tools, ensuring rates reflect current laws. 2. Regularly review tax categories and customer location data for accuracy. 3. Consider integrating specialized sales tax software that can keep you updated on the latest changes, automate calculations, and enhance overall accuracy. Implementing these changes will not only save time but also build a more resilient approach to compliance and financial management 🚀.

Navigating sales tax requirements is a critical aspect of doing business, especially for manufacturers with operations across multiple state jurisdictions. Understanding sales tax nexus, including physical presence, economic, click-through, and affiliate nexuses, is key to compliance and efficient operations. Here's why: - Physical Presence Nexus: Having facilities or assets in a state triggers sales tax obligations. For manufacturers with warehouses or offices in different states, understanding physical presence nexus ensures compliance and prevents unexpected tax liabilities.   - Economic Nexus: Post-Wayfair, economic nexus has gained significance. It requires businesses with a certain sales volume or transactions in a state to collect and remit sales tax. Manufacturers who have substantial sales across state lines, economic nexus management is crucial. - Click-Through Nexus: This nexus applies when businesses receive referrals from state residents. For manufacturers using online platforms or affiliates for promotion, understanding click-through nexus is vital to avoid tax obligations where referrals originate. - Affiliate Nexus: Ties to affiliates in different states creating tax obligations. Clear communication and understanding of affiliate activities and nexus thresholds are essential to prevent unexpected tax liabilities. Navigating sales tax nexus is crucial for compliance, cost management, operational efficiency, and positive business relationships. Staying informed and leveraging tax automation tools can streamline processes and ensure smooth operations across states. Compliance is not just about avoiding penalties—it's about building trust and enhancing business relationships. Check out the blog post that Avalara wrote for ESS. https://lnkd.in/gsErHjTy #SalesTax #Compliance #InternationalBusiness #Manufacturing #Tax

Too many software companies are trying their best to cut out the sales tax consultant. Our mission is a little different. We want to EMPOWER consultants through software to provide better services for their clients through fair pricing, ease of use, and automation. For example, our upcoming Sales Tax Nexus Study tool is designed to help sales tax professionals perform accurate Nexus Studies quickly and at a lower cost. We see nexus studies as an important tool for firms to communicate their value and sell more follow-up services. The time spent massaging transaction data and calculating nexus/exposure values could be spent helping clients get into compliance. Ultimately, a fast and accurate Sales Tax Nexus Study is good for both the firm and the client. This is just one of the ways we hope to help. We're working on other tools to help smooth the path to sales tax compliance so stay tuned! #salestax #indirecttax #taxcompliance #taxconsultant #stateandlocaltax #salt