A recent Aberdeen Group survey uncovered sales and use tax filing challenges resulting in audit penalties and interest in manufacturing to the tune of 2 percent of revenue per year. Not surprisingly, manufacturing leaders in the tax, finance and IT functions cited tax return preparation and filing as a top drain on the business. Plainly […]
As Peter Drucker once said, “In times of turbulence the biggest danger is to act with yesterday’s logic.” Yet that is exactly what many businesses today are in danger of doing while still working with technology that was built for an offline world. Sales tax software is a great case in point. According to Aberdeen […]
Over the last year, there has been a tremendous amount of chatter among the sales tax cognoscenti about the case South Dakota v. Wayfair, which the U.S. Supreme Court is poised to publish its ruling on soon. Indeed, on this blog alone since January you can find several original posts, including on what the case […]
Companies dealing with complex sales and use tax determination, VAT regulations and other tax challenges across the globe know that SAP alone is not equipped to support the varying requirements from country to country. As SAP sunsets support and updates for ECC and R3, companies must move to HANA to keep their systems up to […]
Among accounts payable (AP) professionals, “B” Notices from the IRS are sometimes known as “bummer” notices. They’re a sign of missing or incorrect information on 1099 forms subject to backup withholding. For AP professionals, this usually involves form 1099-MISC, the form used to report to the IRS payment of services rendered for vendors and independent […]
After initially focusing on data and automation to gain visibility and ensure tax compliance in business-to-business transactions, many governments are now extending technology into business-to-consumer trade, requiring eReceipts. So, what’s the story behind eReceipts, and why do they matter? Here’s a quick tutorial to get you up to speed. What are eReceipts? eReceipts are the […]
The governments and tax administrations of South and Central America were among the first in the world to adopt ambitious programmes that mandate the use of e-invoicing based on ‘clearance’ and structured data files. Over the past ten years, we’ve seen them leapfrog the time-honored concepts of paper-based, post-audit processes to put in place entirely […]
Successful organizations may experience growth very rapidly. While growth and expansion offer tremendous benefits to your brand and revenue, it can have a crippling effect on internal departments, particularly Tax during sales and use tax filing. As sales and operations expand geographically, so too does your tax obligation. Spending valuable time and money on Indirect […]
Invoicing in Latin America has become complex to the point of being daunting. Businesses that get electronic invoicing processes wrong could quickly grind to a halt. Mastering the eInvoicing process is critical, then, and it involves making sure that all four elements of eInvoicing are working smoothly at the same time. New regulations, most notably […]
Long-awaited recent guidance from the IRS on abandoned property illustrated why 1099 reporting can be so complicated. Simply put, there are gaps in reporting regulations that sometimes go unfilled—and then produce surprises when the IRS does fill them. One of those gaps involved abandoned property on deferred income products—essentially, pensions, annuities or insurance policies people […]
In order for businesses in Latin America to reduce their risks of fines, penalties and operational disruptions, it’s imperative to understand and manage the ever-changing eInvoicing and VAT reporting mandates sweeping throughout the region. While proactive compliance can improve operational efficiency, streamline processes and increase cash flow, many companies do not have strategic processes in […]
The Tax Cuts and Jobs Act eliminated the Affordable Care Act (ACA) individual mandate effective in 2019. But with states bringing mandates back on their own, state-by-state reporting could be the next trend in ACA compliance. When the new tax law dropped the requirement for individuals to carry health insurance or pay a fine, widespread […]
Country-by-Country News Mexico Allows Temporary Penalty Waiver for 2017 CFDI of Nomina The Tax Administration Service of Mexico (SAT) has announced that it will allow, until May 15, 2018, the correction of CFDI of Payroll (CFDI de Nomina) issued during 2017. For that purpose, SAT issued a new Rule 2.7.5.7 in the First Modification of […]
A silent revolution is spreading across Europe. As governments across the EU seek to close their VAT gaps, increasingly we’re seeing the trend towards government-controlled, real-time invoice control platforms, known as the ‘clearance’ model. Post-Audit vs Clearance In the standard post-audit model of invoice compliance, invoices are exchanged between the supplier and the buyer. Both […]
Nice job on getting your spring filing done! You deserve a reward! Take the rest of the day off and make yourself a drink I like to call ‘Good Escheat.’ 1-part orange pop, 1-part lemonade, 1-part rainbow sherbet. Mix it together and enjoy! And remember, just as it takes multiple different items that alone might […]
Italy will soon join Hungary in requiring real-time, transaction-level reporting. With the launch of the first phase imminent (1 July 2018), Italy’s tax authority recently released new information on its eInvoicing requirement. In February, the European Commission backed Italy’s request to implement mandatory eInvoicing. This clearance is a game-changer for businesses operating in the European […]
Facebook was open to the public for more than a decade before most users thought all that much about what companies do with the data they share on social media. In the wake of the Cambridge Analytica scandal, that’s not the case anymore. And with Europe’s groundbreaking General Protection Data Regulation (GDPR) having kicked in […]
In my last post, “Accounts Payable Process Improvement with Use Tax Automation,” I looked at the challenges managing tax compliance on purchases and how some of your peers we’re dealing with the problem based on the live webinar polls. As promised, below is a recap of the two different approaches to sales tax validation and […]