What you need to know about Nexus, Sales Tax Compliance, and Audit Risk…
Businesses frequently misunderstand the statutory sales tax requirements of states in which they operate and as a result expose themselves to significant risk of audit penalties and fines.
The definition of nexus in regards to sales tax is typically determined by a “physical presence” in a state that determines whether a business is subject to collecting and remitting sales taxes for sales within that state. Laws surrounding what constitutes nexus vary from state-to-state, which can make things complicated if you are selling into multiple states.
Growing budget deficits are motivating states to change existing laws to increase revenues through new sales tax obligations (broadening the definition of nexus). Additionally, legislation such as the Marketplace Fairness Act of 2013, is gaining momentum in Congress; and if passed, internet and remote sales tax will be the new reality for many businesses.
No business is immune anymore, so it is wise to at least understand your current nexus obligations, so you can proactively comply. Our sales tax partner, Avalara, has created a simple Nexus Wizard that will walk you through 10 simple questions to help you analyze where you might have sales and use tax nexus.
By completing this Nexus Wizard, you will receive a nexus summary based on the answers you provided. This summary in no way provides legal or tax advice. However, it can offer insight into the application of nexus laws to your situation. Avalara strongly encourages sellers to consult with their tax specialists and professionals or request a comprehensive nexus analysis from the Avalara professional services team.
Interested in learning more about how Avalara can help you automate your sales tax compliance within Sage 100 ERP, Sage 500 ERP or Sage ERP X3, so you don’t have to worry about nexus anymore? If so, register for our upcoming webinar:
Webinar: Stay Ahead of Sales Tax Changes with Sage Sales Tax
August 20, 2013
2 PM ET / 11 AM PT