Voluntary Disclosure Process For Erroneous Reporting

Voluntary Disclosure Process For Erroneous Reporting

It’s every online retailer’s nightmare: a dreaded audit or costly penalties and fines for erroneous sales tax reporting. And yet, the ever-changing landscape of sales tax regulations that affects ecommerce retailers means that errors in reporting are a real possibility for even the most conscientious of vendors. Is there a way retailers can protect themselves…

What is Excise Tax?

What is Excise Tax?

There are many forms of taxation in the United States, some collected by the federal government and others by local governments and States. One tax in particular that affects the consumption of specific goods is the excise tax – a very specific, often very targeted tax that you pay sometimes without realizing it. How is…

Are Software, SaaS, and Cloud Computing Services Taxable?

Are Software, SaaS, and Cloud Computing Services Taxable?

Ecommerce shops that sell software may run into complex rules regarding sales and use tax. It’s tempting to believe that “intangible” software, such as downloads and streams, are not subject to sales tax, but that is not always correct. As services available via cloud computing grow, states are looking to recoup lost sales tax revenue…

What You Need to Know about Sales Tax and Drop Shipping

What You Need to Know about Sales Tax and Drop Shipping

Drop shipping is a great way for e-commerce businesses that have limited or untested inventory to expand their customer offerings. By retailing products that are carried and housed by a third party distributor, such as a manufacturer, wholesaler, or fulfillment house, retailers can use drop shipping as away to grow their customer base, bring in…

5 Surprising Business Activities that Create a Sales Tax Nexus

5 Surprising Business Activities that Create a Sales Tax Nexus

In most cases, a business needs to collect sales tax in the states in which they are located. This concept, called nexus, means that if the business has a physical presence in a state, that state can compel the business to collect sales tax from its customers. Nexus is pretty cut-and-dry when you’re thinking about…

Do You Need to Collect Sales Tax on Services?

Do You Need to Collect Sales Tax on Services?

Naturally, sales tax applies to products, and while rules may vary, they are fairly straightforward in terms of when it is required. What’s more challenging, however, is knowing when services are taxable. In the past, services typically did not incur sales tax, but as small businesses make headway into industries that were formally only controlled…