Thursday, February 13, 2020

Is your company or business up to date on sale tax compliance?

As the tax laws of services and goods continue to expand, it is important to stay up to date and to make sure that you fulfill your obligations on sales tax compliance.  

As one of the largest sources of state revenue, sales tax is crucial to basic government operations.  The types of goods and services that are subject to sales tax is ever expanding, and the risk of calculation errors are increasingly higher.  You may think you are sales tax compliant, but if you don't stay up to date as the tax laws expand, you could owe taxes that you are completely unaware of.  The best thing for you to do to ensure that you remain compliant, is to hire a sales tax consultant.

There are a number of sales tax services that you can consult with.  And you can use these services to ensure that your business stays up to date as the sales tax laws change.  It's like having your very own tax expert to keep you informed and ensure that you remain compliant.

The types of goods and services that are subject to sales tax can change so quickly, and it varies from state to state.  And if you sell over the internet... well, the landscape of internet sales tax is constantly changing as well.  Not only do you need to know if your product or service is taxable, you also need to know if the tax is based on the origin or the destination.  

Nearly everything is taxed these days.  Both products and services are now taxable.  And sometimes it can be difficult to tell if something should be categorized as a good or as a service for sales tax purposes.  So they employ something called the "True Objects Test".  This test depends on the purpose of a specific service to determine how it is categorized.  

Keeping up with all of these changes can be very confusing.  Even digital products that you download are now subject to sales tax in many states.  Most states do not charge sales tax of food sales, but a few do.  Is your state one of them?  

Are you confidant that you are fully sales tax compliant?  Or could you be overpaying or underpaying these taxes?  Do you know the difference between tax exempt products and services and which ones are subject to sales tax?  Even if you do your research online in an attempt to stay up to date, websites are not always updated as frequently as we would like, so there is no guarantee that your research is yielding the latest information for you.  

The only sure way to ensure that you remain in compliance is to use a service that stays up to date on all of the changes that affect you, both locally and across the country.  They will make sure you pay the taxes that you are required to pay, ensuring that you neither underpay, nor overpay.  And they will help you keep everything organized so you are ready in the event of an audit.      

So put an end to the struggles and worries of how to remain sales tax compliant.  Seek sales tax support from a reliable service and let them keep you up to date.       

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