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The U.S. software industry is no stranger to evolving technology. But what about sales tax compliance? Can this segment keep pace with ever-changing regulations, while still meeting customer needs? Sovos and SG Analytics conducted a survey to better understand how software organizations are planning to improve sales tax management. Overall, 43% of respondents said they […]

Back in 1959, Barbie took her first plastic steps to become the cultural icon that she is today. Living in that Barbie world meant driving to your local toy store and physically purchasing the doll and accessories. Physical products like this were and still are subject to sales tax, meaning the consumer pays tax at […]

Businesses use software for everything, and for many companies, the aggregate cost of all their software licenses represents an enormous expense. When purchasers of business software acquire or renew their license, negotiations around the total price of the solution are often rigorous and sometimes even contentious. This is understandable as cost containment is a key […]

We’ve previously discussed key things to keep in mind if your business receives a sales tax notice, but what could potentially cause your organization to receive one? Knowing the common causes for a sales tax notice won’t guarantee that your business will never receive one. However, being able to prepare for receiving one can help […]

If you are evaluating Sovos, we want you to understand expectations for the customer experience and what teams are there to support you. At Sovos, we have a range of teams ready to support you from the day you sign a contract. Whether it be a customer success representative to review the value you are […]

Have you ever received a sales tax notice from a state department of revenue? Whether you answered yes or no, there are important things to keep top of mind to help keep your business prepared. Finding out that you have failed to comply with one or more of your sales tax obligations can be startling. […]

By Steve Claflin, CLA It’s incredible that it has now been five years since the landmark Wayfair decision. It seems like just yesterday we were reading the case, alerting clients and tracking the ever-developing state guidance. Unfortunately, many companies still are not familiar with their sales tax filing obligations caused by economic nexus, or they […]

For fully remote sellers, sales tax compliance in Alabama can feel daunting. However, just prior to Wayfair, Alabama created the Simplified Sellers Use Tax system. Today, remote sellers with economic nexus in Alabama can apply to participate. Once accepted, their transactions become subject to a special flat rate (currently 8%), which represents an amalgam of […]

New Mexico used to be one of a minority of states that applied origin-based local sales tax sourcing while also not applying a complimentary “seller’s use” tax to its local sales tax. Both of these things have changed in recent years. Today, New Mexico joins the majority of states in applying a destination-based tax system […]

Despite Louisiana’s struggles to adopt meaningful sales tax simplifications, it implemented the Sales and Use Tax Commission for Remote Sellers, creating a single spot for state and local sales tax filing. Unfortunately, this system does not address the complexities of local sales tax rules. Prior to Wayfair, Louisiana allowed “volunteer” remote sellers to use their 8.45% […]

Until recently, Florida required sellers to calculate sales tax using a “bracket schedule,” which determines how much tax applies to the portion of sales priced under $1.00. While other states also publish tax brackets, those schedules are readily broken down into a clear mathematical formula. This was not the case with Florida, which previously continued […]

In the five years since the Supreme Court case of South Dakota v. Wayfair, Inc., every state with a sales tax has enacted a law regarding economic nexus. However, Wayfair did not change the constitutional requirement that sales tax cannot represent an undue burden on interstate commerce. To the contrary, it can be argued that […]

Texas is not the most complicated state when it comes to sales tax. Like Alabama, there are a plethora of local rates, but there aren’t the same tapestry of special rates and rules. Nonetheless, Texas has adopted a Single Local Use Tax rate and allows any remote seller (aside from marketplace facilitators) to use this […]

When South Dakota first adopted its thresholds for determining what remote sellers would become obligated to collect and remit their sales tax, the state specified that it would apply to companies that had, on an annual basis, $100,000 in gross sales or engaged in 200 or more separate transactions into the state. Once the Wayfair […]

Colorado created the Sales and Use Tax System (SUTS) in 2017, providing a statewide local filing portal, sales tax lookup tool and a robust tax matrix. The system is currently available for businesses with retail sales over $100,000 per year and has around 50 participating locals. Given the number of “home rule” cities in Colorado, […]

While there is no statewide sales tax in Alaska, locals are given wide authority to impose and collect sales tax through enacting local ordinances. Around 100 of these boroughs and cities have stood up their own sales tax requirements. In order to benefit from the 2018 Wayfair case, the taxing locals realized they needed a […]

While the landmark South Dakota v. Wayfair Supreme Court decision flipped the traditional physical presence nexus standard on its head, the foundational requirement in the Commerce Clause of the U.S. Constitution prohibiting states from enacting tax requirements that discriminate against or unduly burden interstate commerce remains. As we approach the Wayfair fifth anniversary, this principal […]

Moving from an on-premise sales tax engine to one in the cloud can help businesses better manage their sales tax obligations. Whether organizations need improved oversight and management of exemption certificates, an automated process for tracking ever-evolving regulatory changes or more comprehensive compliance reporting, a cloud migration project may be needed. However, there are several […]