Sales Tax
This discussion outlines the basics of sales and use tax and transfer pricing, considers how intercompany transfer pricing may unintentionally lead to sales tax exposure, and offers steps to avoid audit assessments and penalties.
The regulations provide examples to help taxpayers determine when a seller or facilitator becomes either a “marketplace facilitator” or “retailer” for California sales and use tax purposes and when a taxpayer establishes a tax registration and filing responsibility in California based on its sales activity.
This article discusses the status of indirect taxes for e-commerce businesses, the expected changes to the EU VAT and U.S. state and local sales tax, and the difficulties for businesses selling goods to consumers online.
New York’s and New Jersey’s different interpretations of situs could result in double taxation.
States have been showing a trend toward taxing
an increasing number of services.
Several states have begun extending the economic nexus standard approved in Wayfair beyond sales tax, adopting economic nexus provisions for
corporate income taxes.
Businesses can follow this six-step analysis to make
sure they cover their bases in complying with new remote-seller sales-and-use-tax responsibilities.
Not-for-profits that sell goods or services may find themselves needing to register for sales tax accounts in other states to remain in compliance.
Buyers and sellers must now consider how Wayfair affects M&A tax due-diligence efforts, purchase agreement indemnities, and navigating remediation
plans between the parties around prior-period exposures.
Marketplace sellers, especially smaller businesses with limited resources, may face unexpected liabilities and obligations.
A recent Alabama Court of Civil Appeals decision held that the business model used by a prominent classroom bookseller did not create use tax nexus
in Alabama during a lengthy audit period at issue .
Wayfair and the TCJA have positioned SALT issues to be a leading consideration in the overall tax landscape in the 2019 tax return preparation season.
A recent case affirmed an appellant could not compel Costco to seek refunds of over-collected sales tax charged on items that the California
Board of Equalization classified as exempt food.
This decision is the most significant state tax case in the past 25 years and raises new and fundamental issues.
The Supreme Court overturned its decision that required businesses to have physical presence
in a state before the state could require them to collect and remit sales tax on purchases by customers within the jurisdiction.
The U.S. Supreme Court held that states can assert nexus for sales and use tax purposes without requiring a seller’s physical presence in the state.
The Supreme Court heard oral arguments in a case with broad remote sales tax collection ramifications.
States are attempting to increase revenues by enacting laws that expand the definition of nexus-creating activities.
States have gotten creative and taken matters into their own hands in an attempt to collect lost tax revenue.
This column discusses compliance considerations, including nexus, taxability, and how to source
the revenues from customers.
