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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
Online travel companies on the hook for local sales taxes in Arizona
Arizona Supreme Court finds online travel companies must collect tax on service fees and mark-ups paid to book hotel rooms.
Important Connecticut sales tax changes for digital goods
Department of Revenue Services releases guidance addressing increased sales and use tax rate for certain digital goods and services.
Illinois tax amnesty programs kick off on Oct. 1, 2019
Amnesty programs will run through Nov. 15, 2019, and offer qualifying taxpayers complete waiver of interest and penalties.
Effective November 2019 Poland introduces Split Payment Mechanisms
Effective Nov. 1, 2019 Polish tax authorities announced they will introduce what is known as a Split Payments Mechanism (SPM).
New Hampshire enacts law to protect in-state businesses from Wayfair
New law aims to protect New Hampshire businesses from sales and use tax compliance obligations due to economic sales tax nexus.
Kansas offers remote seller guidance without a small-seller threshold
The state has indicated that it will enforce economic sales tax nexus on Oct. 1, 2019, without a minimum sales or transaction threshold.