Kevin Akeroyd’s Post

Navigating sales tax requirements is a critical aspect of doing business, especially for manufacturers with operations across multiple state jurisdictions. Understanding sales tax nexus, including physical presence, economic, click-through, and affiliate nexuses, is key to compliance and efficient operations. Here's why: - Physical Presence Nexus: Having facilities or assets in a state triggers sales tax obligations. For manufacturers with warehouses or offices in different states, understanding physical presence nexus ensures compliance and prevents unexpected tax liabilities.   - Economic Nexus: Post-Wayfair, economic nexus has gained significance. It requires businesses with a certain sales volume or transactions in a state to collect and remit sales tax. Manufacturers who have substantial sales across state lines, economic nexus management is crucial. - Click-Through Nexus: This nexus applies when businesses receive referrals from state residents. For manufacturers using online platforms or affiliates for promotion, understanding click-through nexus is vital to avoid tax obligations where referrals originate. - Affiliate Nexus: Ties to affiliates in different states creating tax obligations. Clear communication and understanding of affiliate activities and nexus thresholds are essential to prevent unexpected tax liabilities. Navigating sales tax nexus is crucial for compliance, cost management, operational efficiency, and positive business relationships. Staying informed and leveraging tax automation tools can streamline processes and ensure smooth operations across states. Compliance is not just about avoiding penalties—it's about building trust and enhancing business relationships. Check out the blog post that Avalara wrote for ESS. https://lnkd.in/gsErHjTy #SalesTax #Compliance #InternationalBusiness #Manufacturing #Tax

Knowing when to collect sales tax on out-of-state sales can be tricky. Here are some helpful tips. Essential Software Solutions Avalara

💸 Sales tax constitutes a substantial cost for every #eCommerce enterprise. Exploring opportunities to capitalize on #tax advantages when selling to the US states without #salestax appears to be an obvious choice. However, the intricacies of sales tax make things more complex than they seem. Let's delve deeper into this tax break territory by assessing both the advantages and disadvantages. Here's the Complyt sales tax guide for savvy sellers! 📚🛍️ https://hubs.ly/Q02ddK9w0 #Ecommerce #Retail #CFO #Controller #TaxCompliance #IndirectTax #TaxObligations #SalesTax #USTax #TaxLaws #TaxRegulations #Finance #TaxPlanning #TaxTips

Handling sales tax manually for retailers selling through several channels is unmanageable. Check out our article about using technology to overcome nexus compliance hurdles. https://lnkd.in/g4yuekTG

To all the e-commerce business owners out there, it is of absolute importance to keep track of your sales tax requirements for the states you have sales in. I've seen a lot of really great e-com businesses get stopped dead in there tracks by state sales tax audits. They are painful, expensive and extremely time consuming. I've included a sales tax guide by state from Avalara below. Please reach out if you have any questions. #ecommerce #salestax

Handling sales tax manually for retailers selling through several channels is unmanageable. Check out our article about using technology to overcome nexus compliance hurdles. https://lnkd.in/g4yuekTG

Understanding sales tax is crucial for online sellers. Our guide breaks down when and how to collect it, ensuring your business stays compliant. #EcommerceTax #BusinessCompliance ➡️

𝐒𝐧𝐚𝐭𝐜𝐡 𝐔𝐩 𝐀𝐥𝐥 𝐌𝐲 𝐔𝐒 𝐒𝐚𝐥𝐞𝐬 𝐓𝐚𝐱 𝐊𝐧𝐨𝐰𝐥𝐞𝐝𝐠𝐞! Lets do the mastery today. Sales tax in the United States might seem like a tangled web, but it's simpler than it appears. Here's the breakdown: 𝗦𝗮𝗹𝗲𝘀 𝗧𝗮𝘅 𝗕𝗮𝘀𝗶𝗰𝘀: It's applied at retail for goods and services, varying by state and jurisdiction, and only at the point of sale, unlike VAT. 𝗗𝗲𝘀𝘁𝗶𝗻𝗮𝘁𝗶𝗼𝗻 𝘃𝘀. 𝗢𝗿𝗶𝗴𝗶𝗻-𝗕𝗮𝘀𝗲𝗱: Tax rates can be determined by the buyer's location (most states) or the seller's location. 𝗡𝗲𝘅𝘂𝘀: This is the business's connection to a state, requiring them to collect sales tax there. It can be a physical store or economic activity like high sales volume. 𝗘𝘅𝗲𝗺𝗽𝘁𝗶𝗼𝗻𝘀 𝗮𝗻𝗱 𝗘𝘅𝗰𝗲𝗽𝘁𝗶𝗼𝗻𝘀: Not everything is taxable; some states exempt groceries, medications, or clothes, and occasionally offer tax holidays for certain purchases. 𝗢𝗻𝗹𝗶𝗻𝗲 𝗦𝗮𝗹𝗲𝘀/𝗘𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗲 𝗦𝘁𝗼𝗿𝗲𝘀: Post the "South Dakota v. Wayfair Inc." decision, many states require online sales tax collection, including from large marketplaces on behalf of sellers. 𝗨𝘀𝗲 𝗧𝗮𝘅: To avoid missing out on out-of-state purchases, states might impose a "use tax" for items bought without sales tax from another state. 𝗦𝘁𝗮𝘁𝗲-𝗯𝘆-𝗦𝘁𝗮𝘁𝗲 𝗩𝗮𝗿𝗶𝗮𝗻𝗰𝗲𝘀: Some states, like Oregon and Delaware, don't impose sales tax, while others have complex local rules. 𝗛𝗮𝗻𝗱𝗹𝗶𝗻𝗴 𝗦𝗮𝗹𝗲𝘀 𝗧𝗮𝘅: Businesses collect tax and then file returns, often quarterly or annually. 𝗔𝘂𝗱𝗶𝘁𝘀 & 𝗣𝗲𝗻𝗮𝗹𝘁𝗶𝗲𝘀: States audit for compliance, and penalties for non-compliance can be severe. Stay yourself Updated With fluctuating laws, it's wise to use tax software or consult a tax professional. And remember, for your business sales tax needs,I am offering Sales Tax Solutions Just 𝗳𝗿𝗼𝗺 $𝟲𝟵 Get in touch to demystify sales tax for your business today! #cpa #salestax #ecommerce #shopify #amazon #nishapatel #bookkeeping #statetax #acccounting #tax

Navigating the Sales Tax Labyrinth: For online businesses, finding their way through labyrinthine sales tax rules can feel like a never-ending puzzle. One wrong turn, and unexpected tax liabilities and penalties can appear out of thin air. Understanding sales tax nexus is the key to compliance and avoiding costly setbacks. Let's dive into the "Big Four" of Sales Tax Nexus: 1️⃣ Physical Nexus: The brick-and-mortar scenario. Having a physical presence like a store, office, or warehouse in a state creates nexus. 2️⃣ Economic Nexus: After the landmark Wayfair vs South Dakota ruling, states adopted economic nexus laws. Meeting certain sales thresholds triggers a sales tax obligation, regardless of physical presence. 3️⃣ Affiliate Nexus: Partnered with another entity? If they have physical nexus and assist with sales, you may be held responsible for collecting sales tax. State laws vary, so analyze with care. 4️⃣ Click-Through Nexus: It applies to online businesses that use in-state affiliates to generate sales through website links. This emerging form of nexus is gaining attention, but laws differ across states. Our seasoned professionals provide accurate and comprehensive sales tax nexus studies, tailored to your business. Whether you're an e-commerce business, a brick-and-mortar store, or a mix of both, we've got you covered. Let us guide you through the process and ensure your business stays on the right side of the law. Discover the Source Advisors difference today. #SalesTaxNexus #Compliance #NavigatingTheLabyrinth #SourceAdvisors

Sales tax returns are due tomorrow! What do you need to know?? 🤔 🗽 State Matters 🗽 Sales tax is governed by individual states, each with its own rules. No federal sales tax, but plenty of state and local variations. 🤏 Nexus Awareness 🤏 You collect sales tax where you have "nexus" - a connection to the state. It's not just about physical presence; it can include employees, inventory, and more. 📜 Permit First 📜 Always register for a sales tax permit before collecting tax. Check with the "[State] Department of Revenue." 🛍️ Channel-Agnostic 🛍️ Collect sales tax on all channels, regardless of where you sell – retail, online, or through marketplaces. 🔢 Rate Realities 🔢 The tax rate depends on the state and whether it's origin-based or destination-based. Exemptions vary, so know your products. 💻 Filing Frequency 💻 Higher sales volume often means more frequent filings. States assign a filing frequency when you register. 🗓️ Due Date Dynamics 🗓️ Due dates vary by state; some are on the 20th, others on the last day of the month. Check with your state's Department of Revenue. 🚫 Zero Return Rule 🚫 Even if you didn't collect sales tax, file a return. Don't risk penalties or license revocation. 💰 Timely Pays Off 💰 Some states offer discounts for on-time payments, so stay informed about potential savings. 😌 Resale Relief 😌 If you're reselling products, explore resale certificates to avoid paying sales tax twice. Navigating sales tax may seem daunting, but mastering these basics sets you on the path to compliance and financial success. Need help? Reach out!  #SalesTax101 #EntrepreneurTips #TaxCompliance