If you are a Retailer, Wholesaler or an E-commerce business owner who sells and ships inventory goods to multiple states, our Tax & Accounting practice can help you comply with the sales tax requirements in all the states and local governments in the USA.
One of the services that Voyage Tax Consulting LLC is helping business owners with the entire sales tax life cycle across all the business sales channels.
We cover a variety of services, from calculations and nexus tracking to initial sales tax state registration, reporting and filing. We simplify sales tax compliance so the business owner can grow with ease and focus on the strategies of their core operations.
Sales tax compliance comes in many forms, and use-tax is one of them. You may see the term “sales and use-tax” when applying for a sales tax permit in a state, filing a sales tax return in a state, or checking your economic nexus thresholds within a state.
What’s the definition of sales tax? What’s the definition of use tax? What’s the difference between use tax and sales tax? Which states enforce use tax on the seller or the buyer? at Voyage Tax Consulting LLC, our licensed professionals can answer these questions & help business owners with their CFO needs.
Sales Tax VS Use Tax VS Consumer Use Tax
Selling your goods to your local customers usually triggers Sales tax. Sales tax is added to the price of the item and charged to the consumer within your state or other states that doesn't distinguish between local business & foreign businesses (out of state).
Seller use-tax is a transaction tax, calculated as a percentage of the sales price, and remitted by an out-of-state seller to the state. Seller's use-tax only applies to “remote sellers.” Remote sellers are generally defined as businesses who have economic nexus in the state but who are not based in the state.
Consumer sales tax is just another term for use tax when the buyer pays the tax. Consumer use tax is paid directly by the buyer to the state department of revenue by filing a use tax return or, in some states, by including an amount on the income tax return filed each year with the state. States don’t generally do a great job of enforcing consumer use tax unless it’s on an expensive item, like a car or computer.
What is Nexus?
Sales tax nexus is the amount of sales or presence your business has in a state or city. It is the level of connection between a taxing jurisdiction such as a state and an entity such as your business. Until this connection is established, the taxing jurisdiction cannot impose its sales taxes on you.
There is no specific shared definition of nexus across the 50 states. Moreover, definitions and rules for determining nexus change constantly, and most states are careful to give themselves room to maneuver in their definitions. This means that a business must look at each state individually when determining sales tax nexus and must stay constantly on top of a slew of changing regulations and interpretations.
Voyage Tas Consulting LLC is ready, willing and capable to be your outsourced CFO to take care of you Accounting & Taxes needs.
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