Sales & Use Tax

Updated August 2016 Under the Streamlined Sales Tax Project (SSTP), sales tax sourcing is destination-based – that is, the tax is collected and remitted according to the jurisdiction in which the product is delivered. However, the states vary in the sourcing methods they use to collect sales tax within their borders. Eleven states use origin-based...… Read More

A sales tax exemption certificate or a resale certificate is required when otherwise taxable items are sold tax free, such as when retailers purchase items for resale or manufacturers purchase raw materials that go into inventory. The exception is for organizations, like non-profits and government agencies, that are inherently tax exempt. According to state regulations,...… Read More

A regulatory compliance review should be performed by every accounts payable department, advises IOFM's Education Director Pam Miller and other leading compliance experts. The following approach can help structure and execute your assessment. Phase One: Define the Scope of the Review Create a team that includes the controller and a representative from AP, internal audit,...… Read More

More than 7,000 different authorities impose their own taxes in the U.S. alone. This includes approximately 1,600 counties and 4,500 cities. "The structure of a contract, the format of a purchase order and the related invoice, as well as the vendor location, can all impact whether a transaction is subject to tax and the rate...… Read More

Within the last ten years, states have ramped up efforts to enforce sales tax compliance. Audits have become more frequent and states have identified increased sales tax audits as a way to close the budget gap without raising taxes or cutting services. As a result, companies that have never been audited—or at least not in...… Read More

Many businesses don't even think about where their servers are--particularly if they have a hosting agreement with a third party. What Is Required of Companies Selling Goods Over the Internet? "If you are selling goods over the Internet, and your company has a presence in the state of delivery, your company has established nexus and...… Read More

In two recent surveys conducted by Vertex Inc., one of finance professionals and the other of state audit officials, respondents were asked how sales and use tax assessments might be reduced and how companies could deal with related tax issues more efficiently. By far, the most common response was the use of automation. “Specifically, 77...… Read More

According to The Aberdeen Group, companies can only reduce their sales and use tax audit exposure and risk by being proactive in their tax due diligence process. "Organizations must make sure that numbers are right and that the filings and payments are on schedule. If a company were to be audited by the local government,...… Read More

The days of shoppers buying tax-free products online are numbered. Two bills requiring retailers to collect sales tax on out-of-state purchases are making their way through Congress and have garnered bi-partisan support. Many politicians agree that progress is imminent. While most of the focus has been on collecting sales tax from internet retailers, the proposed...… Read More

Hospitals and other organizations that purchase medical devices will likely notice prices on their invoices creep up beginning in 2013. A provision of the Patient Protection and Affordable Care Act created a new federal excise tax on the manufacture of medical devices. The tax became effective Jan. 1, 2013. While the IRS actually imposes the...… Read More

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