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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
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.
Sales tax on Texas medical billing services quickly approaching
Recent reversal of long-standing exemption for medical billing services scheduled to be effective April 1, 2020.
Illinois explains nuance to marketplace collection requirements
Department issued compliance alert explains the sales and use tax collection responsibilities for marketplace facilitators and sellers.
Massachusetts Supreme Court finds remote software subject to sales tax
Online software products allowing remote access to a host computer as well as screen sharing capabilities were taxable.
Utah quickly reverses course, repeals tax reform
Six weeks after enacting significant tax changes, the Utah legislature and governor repealed the entire tax reform package.
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.