How many of the following terms can you define?
Streamlined Sales Tax (SST)
Marketplace Fairness Act of 2013 (MFA)
Consumer Use Notification
If you can define all six, congratulations! You’re a sales tax rock star!
For the rest of you, download The End of Nexus & Other Sales Tax Compliance Challenges Simplified to see the answers.
If you were stumped by some or even all, don’t worry, you’re not alone. Sales tax is complicated. It was hard enough when states started hiring more auditors to try and capture “missing” sales tax (and corresponding fines and penalties). In fact, California will hire nearly 100 new auditors over the next three years! Couple that with over 11,000 tax jurisdictions and thousands of rate, rule, and boundary changes annually to keep track of, and the risk of negative audits can be enough to keep you awake at night. And as if that wasn’t enough, add to the mix new sales tax legislation at both the state and federal levels.
‘Complicated’ may just be an understatement.
2012 saw the onset of the “Amazon Laws” trend, where a number of states passed new legislation in an attempt to increase revenue from previously untaxed internet sales. And on May 6, 2013, the Senate passed the Marketplace Fairness Act. If it eventually becomes law, states will have the option to require many remote sellers (online and otherwise) to collect sales tax, even if they don’t have a physical presence in the state.
If you do business in multiple states, chances are these changes will affect your business in one way or another. Prepare yourself by studying up on the laws and proactively plan to implement a sales tax management process.
You can get started on the right foot by attending this webinar hosted by the sales tax experts at Avalara. On Thursday, June 13th at 12:00 PM CST, you can learn how these changes will affect your business and what you can do to be ready! The Sales Tax Landscape Is Shifting. Be Ready.
Don’t worry – there won’t be a quiz at the end!
By Kraft Enterprise Systems Partner, Avalara (http://www.avalara.com/)