Sales Tax Laws You Need to Know Now
Economic nexus laws are leaping across borders, real money is pouring into the virtual world, and sales tax holidays are causing consternation. Read about all this and more below:
To begin with, if sales tax holidays weren’t challenging enough, counties and municipalities aren’t required to participate in Alabama’s sales tax holidays. They’re supposed to let the Alabama Department of Revenue know their plans at least 30 days prior to the start of a tax-free period, but unfortunately, some notify the department mere days before the event itself.
It Wasn’t Quite The End Of The World As We Know It
A new report from the Urban-Brookings Tax Policy Center shows there’s no one answer to the question of how COVID-19 is affecting the fiscal health of states.
The Thick of Sales Tax Holiday Season
Sixteen states are providing 17 sales tax holidays during the month of August. Retailers will need a holiday of their own after keeping track of all the tax-free periods and complying with each state’s requirements.
Taxing Online Sales
Canada takes a lesson from its southern neighbor. As of July 1, 2021, non-resident vendors whose annual sales of taxable goods in Canada exceed $30,000 CAD may need to register for Goods and Services Tax and/or Harmonized Sales Tax.
Puerto Rico Jumps on the Wayfair Bandwagon
Like every other state with a sales tax, Washington, D.C., and some localities in Alaska, Puerto Rico has adopted an economic nexus policy that requires certain out-of-state sellers to register with the tax department and comply with the territory’s sales tax laws.
Nuts and Bolts
Figuring out which business licenses your clients need to open and operate a business can lead them through a perplexing labyrinth of local, county, state, and federal rules, regulations, and interpretations.
Intersecting Laws Can Cause Confusion
States must weave new laws into the fabric of existing laws and address any contradictions or inconsistencies that arise. Thus, several states have clarified how their marketplace facilitator laws impact the exemption for isolated or occasional sales.
Money, Money, Money
Cryptocurrency miners ousted from China need a new home, and Kentucky hopes new sales tax incentives related to mining will lure them to the Bluegrass State.
Not a One-Stop Shop
Opening and owning a new convenience store typically entails a pallet-full of business licenses, permits, and tax obligations.
Beyond the Border
Since electronic invoicing mandates have surged in recent years, U.S. businesses need to know where they exist, how they work, and the benefits of swapping paper for digital invoices.
Also, VAT is a broad consumption tax imposed by many countries across the globe. U.S. consumers experience it much like a sales tax, but VAT looks quite different behind the scenes.
You Scratch My Back, I’ll Scratch Yours
Free trade agreements set advantageous trading practices between two or more countries, at least for certain products. But are there downsides to applying for treaty status?
From the Tap
Wineries producing 250,000 gallons or more per year will be able to ship directly to consumers in Ohio starting September 28, 2021. New Jersey will then be the only state in the nation with a production cap on direct-to-consumer (DTC) sales.
Alcohol-to-go laws in many states have been a lifeline to restaurants and bars throughout the COVID-19 pandemic. Now that restrictions have for the most part lifted, states must decide whether to extend alcohol-to-go policies or allow them to expire.
From the Wire
Communications taxes aren’t just for communicators. Like other taxes, communications taxes often trail innovation. If your clients are selling the latest and greatest services, it may be hard to determine which taxes apply.
What’s more is that because new technologies necessitate new tax schemes, many companies remain unaware that their transactions are liable for communications tax, and the impacts can be severe.
Texas-sized Troubles Surface Over Sales Tax
Two sales tax issues are causing a rift in Texas: The upcoming shift to destination sourcing for online sales by in-state sellers, and the Texas Comptroller’s interest in taxing payment processing services.
For a deeper dive into the any of hte above issues, and more visit this Resource Center.