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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
Louisiana Board of Tax Appeals failed to show refund claim untimely
Taxpayers with filing deadlines should carefully consult state taxing authority rules and regulations on timing filings.
New Markets Tax Credit and WOTC receive one-year extension
Both incentive programs were scheduled to sunset in 2019; receive a one-year extension under federal tax bill.
5 misconceptions for inbound businesses in a post-Wayfair world
Companies investing in the U.S. must consider how the new regime of state and local sales and use tax nexus may affect their organization.
Perishable meat processors eligible for favorable Washington B&O rate
Certain perishable meat manufactures, processors, and sellers may be eligible for a reduced business and occupation tax rate.
Michigan clarifies taxability of management information services
The Michigan Department of Treasury issued a letter ruling detailing the sales tax treatment of various information services.
Massachusetts finalizes marketplace and remote retailer regulations
Final regulations on new sales and use tax registration and collection requirements address remote retailers and marketplace facilitators.