The Down Low on Downloads: Dealing with Tricky Tax Rules on Digital Goods & Services Delivery

The Internet has become a convenient way to shop for goods and services; it’s also become a popular way to deliver them. Consumers and businesses can now conduct online transactions for everything from books to movies to software programs and have these delivered digitally or even stored in the Cloud versus physical media. While convenient and cost-effective (no shipping, packaging, etc.) the virtual marketplace can also be confusing when it comes to tax compliance.
Continue reading

10 Surprising Facts about Sales Tax

An audit costs how much?

Would it surprise you to learn that Wakefield Research estimates a tax audit now costs the average business $96,000? Most people are unaware of just how costly compliance can be. Well, everyone except accountants—half of which admit auditors would likely find mistakes. Check out these 10 revealing truths about sales tax that will likely lead to this one: You need a better way to manage compliance.
Continue reading

Common Misconceptions of Sales Tax Compliance

By Avalara

For many companies, when the topic of sales tax comes up, the first response from most of the staff will be, “What’s the big deal? I just need a rate.” But when you ask a Controller or Finance person, their first response is usually, “They don’t understand. It’s so much more than a rate.”

Here’s why different responses in the same company is a problem: Over 70% of the time, the tax and accounting departments aren’t even responsible for managing tax compliance (charging sales tax, collecting exemption certificates, etc…). For many companies, it’s the credit department who carries that burden. This disconnect in how sales tax is managed and by whom, often results in tax rate, taxability, and jurisdiction errors.

What are the common misconceptions around sales tax compliance? Continue reading