Sales and use tax compliance is a complex issue for many businesses. It almost feels like you need a Swiss army knife to cut through all the red tape, although knowledge is probably a more useful weapon in this instance. Sharpen your knowledge with Avalara’s 2017 Sales Tax Code Survival Guide.
Published yearly, this guide will help you understand the major challenges you are up against when it comes to complying with sales and use tax regulations in the U.S., Avalara’s latest Survival Guide is refreshed for 2017 with insight into what’s new and what’s changed at the state and federal level, common compliance issues and tips for keeping up with your tax responsibilities.
States grow more aggressive in the face of budget deficits
States are facing budget deficits and they need revenue from taxes. Sales and use tax is one of the largest generators of this revenue, but collecting it has become more difficult as the ways in which Americans buy, sell and consume goods and services has evolved beyond what’s defined by state tax laws. For example, Congress has yet to act on outdated federal internet sales legislation; services now outpace goods in consumer spending but aren’t taxed with the same consistency; and digital delivery of software, books and other media and streaming services have states puzzled when it comes to setting standards for taxability.
As a result, many states are taking sales tax more seriously – hiring more auditors, expanding nexus definitions (a agreement with a state that triggers a requirement to collect and send sales tax to that state) to target out of state sellers, instituting use tax reporting policies, raising tax rates, and extending sales tax to include more products and services.
Given the speed at which the rules are changing, it’s more important than ever to stay up to date on the sales tax changes and what they mean for your business
The 2017 Sales Tax Code Survival Guide walks you through 10 critical compliance challenges, from figuring out nexus to managing exempt sales to understanding the implications of drop shipping on your business and dealing with audits and lawsuits. Each section also includes best practices for overcoming these challenges, and links to added information should you need to go more in depth on a topic.
It’s a must-read reference for anyone responsible for tax compliance in their business.
Need help managing your businesses sales tax? Avalara AvaTax connects to the Microsoft Dynamics software you already own and trust. Avalara’s pre-built integrations with the Microsoft Dynamics family of solutions let you automate your entire sales tax management process with ease — from rate and rules assignment to filing and remittance. Contact us today to learn more.
Permission to reprint or repost given by Avalara. Content previously published at www.avalara.com/blog.