If you’re struggling with sales tax, we may just have a solution for you! Our team at iWitness Design has partnered with Avalara, and this post contains some good information from them.
Do you really understand when you owe sales tax? Sales tax is ugly. It’s a time-consuming pass through activity that takes you or your delegate off growing your business and makes you (or your delegate) an employee of the state collecting tax. The States aren’t the only jurisdictions starving for revenue! Your city, county, and other municipalities are always looking for their revenue source – and during recessions the risk of an audit increases as each gets more aggressive in its collection efforts.
What’s a business to do?
Most people accept the costs of doing business and try to follow the rules. Complexity is the challenge most companies face in complying with the regulations associated with sales and use tax because “complex” barely describes the regulations. The truth associated with sales tax is that nothing is uniform; rules, rates, and responsibilities change, not only over time, but between jurisdictions. There are a few key concepts you need to be aware of when it comes to sales tax:
- Nexus: Which states do you need to collect sales tax in, what are the rules associated with doing business in each, and when and where can you e-file?
- Audits: On average, every business gets audited once every five years. Do you know which facets of your business are putting you at risk?
- Exempt sales: Every state has a different rule and exempt sales are an auditor’s dream come true. Are you properly maintaining exemption certificates to justify the amount of tax you owe?
- Use tax: Do you know the difference between sales tax and use tax? It’s critical to understand what you are responsible for collecting.
If any of these concepts are new to you, or you would just like a good primer on the rules and best practices to stay on top of them, then check out Sales and Use Tax Compliance for Dummies – created by the Tax Experts at Avalara.
Are you ready to let go of the headache and worry of collecting and filing taxes? At Skillful Plugins (our plugin shop), we built a plugin that integrates Restrict Content Pro and Avalara. We can help you automate your sales and use tax obligations without needing to worry about ever-changing tax laws and regulations.
We understand how any extra expenses are difficult… especially for small businesses or new businesses just getting off the ground. That’s why we’ve worked hard with Avalara to create pricing that won’t break the bank. Avalara has a strict certification process (and rightly so!) so we’re looking for a few more beta testers to make it all official. This is perfect for businesses located in The US who need help with their local and state taxes. For anyone who deals with VAT, we hope to have this plugin available to you in the New Year.