Sales Tax Management Principles

Confusion, Limitations, And Compliance On your quest for effective sales tax management practices, it is important to keep these four principles in mind. You Won’t Be An Expert Over Night: You won’t be an expert tomorrow, or next week, or even the week after that. It is impossible for one person to know all the sales tax rules in all 50 states let alone keep up with how often they change. All you can do is your due diligence, seek help when you need it, keep your books in order, and file on time.

You Won’t Know What Is Exempt Until You Know What Is Exempt: This principle focuses on the fact that product taxability and exemptions are always changing. Sometimes it is due to changes in regulations or jurisdictions. Regardless, it is your responsibility to make sure the exemption certificates you provide and receive are correct. Sales Tax Holidays Change: Sales tax holidays tend to be around major events (back to school and storm seasons) but they can also come along to stimulate more shopping or for supporting local merchants. Know what tax holidays are scheduled to happen in your area and prepare your POS systems to handle the sales tax change before high traffic times.

Content Is King: Not matter what your role is in the selling chain, managing taxability as your business grows can be difficult. When it comes to sales tax compliance, access to product taxability content is crucial. Understand your limitations and obligations and work within their parameters. If you find yourself filing late or reporting serious errors seek sales tax assistance to lessen the risk of an audit and the fine and penalties that accompany them. When it comes down to it sales tax compliance should be your number one goal for your business and you have several choices when it comes to meeting that goal.

You can do it yourself, outsource the job, or utilize automated software to make compliance easier. Sales Tax DataLink has options to assist you whatever route you choose. Our trained staff can walk you through a free evaluation of your sales tax data and highlight areas where our services could meet your needs. We also offer outsourcing services that keep your business running and allows you to have a more hands-off approach. The only sales tax management approach we don’t recommend is doing nothing and ignoring your sales tax responsibilities.

Latest Articles

5 Things to Look for in Sales Tax Software

5 Things to Look for in Sales Tax Software

After decades of controversy, the Supreme Court agreed that remote sellers, such as ecommerce shops, should pay sales tax to states and cities just as businesses with a physical presence do. One of the reasons: they figured that sales tax software would...

read more
Hotel Tax Hit Will Have Consequences

Hotel Tax Hit Will Have Consequences

A recent study by Oxford Economics says that Arkansas will lose $60.8 million in revenue from hotel tax. Bigger states have to expect bigger losses: $1.9 billion for California, while both New York and Florida may seet losses of $1.3 billion. The nation...

read more
COVID-19 Sales Tax Reporting Surprises

COVID-19 Sales Tax Reporting Surprises

Sales tax reporting has been delayed in many states, but sales tax filings are beginning to trickle in and more states are able to make projections. Many states are seeing their sales tax revenues drop to dangerous levels, causing concern about  being...

read more