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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
COVID-19 Global Tax Policy Measures
In response to the coronavirus impact, tax policy changes are being proposed and enacted in countries around the globe.
The CARES Act passes
Today, the House of Representatives passed the CARES Act on a voice vote and the President signed the bill enacting it into law.
State taxing authorities address COVID-19 filing and business changes
State and local tax filing and penalty relief guidance in response to COVID-19 has accelerated as deadlines approach.
Illinois sales tax ruling on financial services software and services
Financial services businesses providing software and services to Illinois customers may have multiple transaction tax obligations.
State and local sales tax extensions and relief due to COVID-19
Limited sales and use tax filing and payment relief has been included in some of the state and local COVID-19 response guidance.
Overview of the 2020 Mexican tax reform
In early September, Mexico released a proposed tax reform package with significant changes in the country’s international tax regime.