- Automated sales tax software manages filing and payments, but there are other aspects to sales tax compliance.
- Nexus thresholds determine if a company has economic nexus in a state, and rules differ between states.
- Taxability of products or services also varies between states.
- Sales tax registrations are required in each state where nexus is established.
- Consistent and accurate data is crucial for sales tax compliance.
- Notifications from tax jurisdictions must be monitored and responded to in a timely manner.
- A tax calendar must be maintained and updated as filing frequencies change or new registrations are required.
- Refunds of sales tax charged on returned products require verification of details.
- Exemption certificates may be required for certain buyers or items.
- Sales tax audits can occur for various reasons, and preparation is important.
- It is important to treat auditors respectfully and work with them to understand their decisions.
- Seeking help with sales and use tax obligations can alleviate the burden and risk of compliance.
Source: taxconnex.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
