Blog
Preventing sales tax audit risk is the best policy to have in place, versus reacting to an audit. However, when auditors do come knocking, businesses want to be able to quickly and easily find the needed documentation. When you have the right sales tax automation tools and processes in place, the chances of getting audited […]
By Judy Vorndran, J.D., CPA, TaxOps and Nancy Steele, TaxOps To deal with the uncertainty of evolving sales and use tax policies in numerous jurisdictions, businesses have increasingly turned to software providers to deliver the right rates and calculations for each transaction. Unfortunately, calculating the amount of tax due is only part of what it […]
When it comes to consumption taxes, the United States has always taken a different approach than the rest of the world. There is a proposal, however, that is currently sitting in the U.S. House that would upend the U.S. tax system and more closely align it with the rest of the world. While this bill […]
Whether your retail company is planning to advertise in the Big Game this weekend or just watch the excitement with family and friends, there are always key things to prep for with regard to sales tax compliance. Special events can be a boon to retailers, but realizing taxes are impacted in numerous ways can help […]
Building a strong foundation for your finance team is critical for numerous business strategies, including ensuring a compliant and accurate approach to sales tax. We’ve previously discussed the importance of getting your finance/tax and IT teams on the same page, but it’s also critical to take a step back and make sure the teams have […]
Early signs as to what’s ahead To no one’s surprise, 2022 was a busy year in the world of sales tax. Along with the usual barrage of rate, rule and form changes, many of which will become effective on January 1, 2023, we began to witness what is likely the beginning of a shift in […]
Picking the right sales tax solution is not always apparent. Federal, state and local regulations can quickly change. Businesses evolve, whether through introducing new products and services or by expanding into new jurisdictions. Organizations must consider internal processes as well, ensuring that a sales tax solution helps–not hinders–daily operations. It’s also important to independently evaluate […]
Microsoft users have been pushing toward the shift to the cloud and modernizing their IT strategy. However, it is essential they do not overlook their sales tax strategy as a factor in these decisions. As businesses grow and tax regulations become more complex, it will be beneficial to keep sales tax compliance manageable. Sovos recently […]
Sales tax nexus is not static. As your company grows, expands and evolves, your nexus footprint will likely change as well. All too often, companies will not realize the compliance impact of those changes until they receive an unfriendly inquiry from a sales tax auditor. As tax compliance professionals emerge from the barrage of requirements […]
Emblematic of a trend gaining momentum, Wisconsin becomes the fifth U.S. taxing jurisdiction to promulgate official guidance regarding the applicability of sales tax to non-fungible tokens (NFTs). Going as far back as 1976, Wisconsin published a periodic “Tax Bulletin” announcing new laws, letter rulings and status updates on tax-related litigation. In its most recent edition […]
On October 20, the Washington Department of Revenue hosted a public “listening session” to garner taxpayer feedback on the Interim Statement it published regarding the tax treatment of Non Fungible Tokens (NFTs), dated July 1, 2022. As written here, Washington is one of a small handful of states that has overtly addressed the sales tax […]
In a development that should be a surprise to almost no one, a state district court judge invalidated Maryland’s digital advertising tax, which was slated to apply as of January 1, 2022, with the first filing and remittance due on December 31, 2022. By way of recap, in 2021, Maryland passed legislation applying a special […]
Regulatory change and evolving technology continue to fuel modern tax. Businesses need to map out near- and long-term strategies that keep pace with the digital transformation of tax. But working with the right team is essential to organizational success. That’s where the Sovos Customer Success team comes into play. Sovos knows that being able to […]
Are you making sales into or within Puerto Rico? Would you like to expand into PR but are uncertain of the sales tax compliance hurdles you may face? (¡¿Habláis Español?!) If so, you’ll want to understand the tax implications of your activities and be aware of the key sales tax issues and unique tax situation […]
By Diane Yetter, President and Founder of Sales Tax Institute When it comes to building a strategy to manage sales tax, every company will have its own set of obligations, complications and concerns. What is consistent among nimble sales tax strategies (those that improve efficiency and adaptability while reducing risk) are the components you need […]
Earlier this month, Washington released an Interim Guidance Statement on the taxability of non-fungible tokens (NFTs). In short, the Washington Department of Revenue (DOR) suggested that certain types of NFTs would be subject to sales and use tax under existing rules applicable to digital goods and would also be subject to their business and occupancy […]
Sales tax is commonly a driving force for revenue, yet it can be utilized by legislatures to influence change in public policy. Whether the policy sought is centered on economic, public welfare or environmental grounds, tax has been historically used as a facilitator. For example, plastic bags at checkouts of food markets are often subject […]
The State of Indirect Tax, featuring IDC, was a three-session event hosted by Sovos on April 7. It covered IDC’s thoughts on the current and future state of indirect tax, the biggest trends and changes from a regulatory perspective and the importance of aligning your IT and tax teams in your compliance strategy. The sessions […]