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Indirect Tax
Managing obligations and maximizing efficiency in the U.S. and global marketplace
An indirect tax is collected by one entity in the supply chain and paid to the government by the retailer. The expense is passed on to the consumer as part of the purchase price. Indirect taxes generate significant revenue for the state or country that imposes the tax. Although indirect tax is common in the United States and throughout the global economy, it is complicated and many businesses are not getting it right.
Thousands of state and local taxing jurisdictions in the United States complicates any company’s sales and use tax compliance. When compounded with global growth and sales, the addition of value added tax (VAT) and goods and services tax (GST), companies are exposed to significant risk.
Proper indirect tax planning is a vital component of a businesses’ financial and operational strategy. Growing into new markets, expanding product lines and many other common business activities that generate profits often increase your indirect tax exposure.
most recent indirect tax insights
California contractor's purchase of steel taxable at time of sale
California Office of Tax Appeals determined that a construction company could not use a resale certificate for material purchases.
Washington temporarily expands VDA eligibility criteria
Expanded eligibility ending Nov. 30, 2020 presents an opportunity for businesses to come into compliance with certain state taxes.
Tennessee remote seller sales threshold lowered
The revised sales tax nexus standards reduce the current $500,000 threshold to $100,000 beginning Oct. 1, 2020.
Mississippi to enforce marketplace facilitator nexus on July 1, 2020
Mississippi will require marketplace facilitators to register to collect and remit sales and use taxes beginning July 1, 2020.
North Carolina decouples from CARES Act provisions
The state will decouple from the taxpayer-friendly interest expense and net operating loss provisions of the federal CARES Act.
Iowa enacts broad-based tax bill with noteworthy changes
Expansive tax bill provides taxpayer-friendly changes while balancing reduced tax revenue in the COVID-19 economy.