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Alabama Responds to Justice Kennedy’s Concurrence in Brohl: Voluntary Compliance Leading the Way to Economic Nexus in the Sales Tax World Alabama has enacted new rules to define when out-of-state sellers are required to charge sales tax and when they have the option to voluntarily opt to charge use tax on out-of-state sales. Both of […]
The Puerto Rican indirect tax system has gone through a remarkable number of changes during the last 10 years. Back in 2004, the expansion of the fiscal deficit of the Commonwealth and the cities of Puerto Rico started to become unbearable for the government and a serious source of concern for the international bond market. […]
End-of-summer sales tax holidays may be fun, helpful and welcome to consumers, but they are no picnic for the tax departments of retailers. For different periods in July and August of this year, consumers in 19 states saved money by not having to pay sales tax on certain items. It is also not a coincidence […]
For those of you responsible for sales tax compliance in the retail industry, the month of August can be somewhat challenging. As detailed in previous blogs and in our Sales Tax Holiday infographic, the complexity associated with making sure your stores process transactions correctly during all applicable sales tax holidays requires retailers to expend significant […]
Louisiana has a sales tax at both the state and the parish (county) level. The state rate is 4%, while the parish rates vary. In most states, the locals mirror the exemptions provided by the state, which makes compliance a bit easier. Louisiana is not one of these states. The parishes in Louisiana follow the […]
Managing your company’s exemption certificates can be a difficult process that many organizations find difficult to stay on top of. Exemption certificate management, or ECM, can be a large burden for companies who do not have an integrated solution, as employees frequently find themselves struggling to acquire, organize and manage these types of certificates. Exemption […]
If you live in a state with a Sales Tax Holiday, you know how exciting it can be. Stores beef up inventory of the affected items, shoppers get their mega-shopping lists ready, and it’s a race to the register. All this is in an effort to save an average of a few dollars per transaction. […]
The Tax Department at Sovos Compliance is committed to providing our clients with timely and accurate taxability rates and rules. Simply put, for us its considered job #1. Historically, any number of jurisdictions will make legislative and regulatory changes in the area of sales tax effective on July 1, and sometimes political realities result in […]
Did you know these retail facts? They could be affecting your business! The retail industry is a major source of revenue for taxing authorities and companies operating in this space must be particularly careful when it comes to small details. There are certain everyday occurrences that may not be at the forefront of a retailer’s […]
IMPORTANT NOTICE FOR BONDED IMPORTERS IN PUERTO RICO Puerto Rico recently enacted Law 72-2015 which (among other things) increased the state level Sales and Use Tax (IVU) from 6% to 10.5% effective July 1, 2015. The municipal level rate of 1% remains the same, which makes the total IVU rate 11.5% as of July 1. […]
As tax season becomes more of a discussion than an upcoming event, small businesses exhale a sigh of relief. The complex nature of small business tax compliance has created much frustration and even extensions on their yearly filings. According to the National Small Business Association 2015 Small Business Taxation Survey, which included participation from more […]
Virginia holds three sales tax holidays annually. Until this year, the Hurricane Preparedness Holiday took place in May, the School Supplies and Clothing holiday took place in August and the Energy Star and WaterSense holiday took place in October. There has been a lot of debate surrounding sales tax holidays across the country over the […]
District Court Injunction against Colorado Allowed to Stand On March 3, 2015 the United States Supreme Court announced its decision in Direct Marketing Association v. Brohl (575 U.S. (2015). In this case, a trade association for retailers challenged legislation enacted by the state of Colorado in 2010 that required sellers that do not have a […]
In recent years, banks across the globe have been placed under a microscope as authorities seek to curb cross-border tax evasion. Many organizations have faced penalties, fines and reputational damage as a result of this crackdown. In the latest case, one multinational bank’s operations in Switzerland helped numerous wealthy individuals evade taxes. This revelation came as […]
Tax season is often an extremely stressful time for compliance teams, so companies should use technology to their advantage to get through tax season. Whether companies are keeping track of receipts or completing forms to send to payees, technology is their go-to resource for tax information reporting. Keep everything on hand with compliance technology Technology […]
Rounding vs. the Sales Tax Bracket System We all learned about rounding in grade school. If you have something, that calculates out to less than 0.5 cents you round down. If it’s 0.5 cents you round up to the next penny. If you multiply a purchase price of .74 cents by a 6% sales tax rate […]
Cloud computing has grown by leaps and bounds in the fairly short period of time in which it’s been around for public consumption and use. Yet despite improved understanding of what the cloud is, there are a number of half-truths and misunderstandings about it, resulting in an uninformed consumer. “Cloud computing, by its very nature, is […]
Taxability of Goods and Services Sold Online As recent election results have shown, there are few things that states can agree on and the taxability of goods and services sold online is no different. As brick and mortar stores continue to compete with online sales, state legislatures are starting to catch up with laws regarding […]