Sales and Use Tax
Sales and Use tax can make your life quite challenging if you have no idea on whether or not to include it in the final price, which products or services require an addition of this tax, and which types of end users should see it on the bills.
If you sell to multiple states, it behooves you to consider if you have Sales and Use tax nexus in any of these states. State regulations may differ, and if one state requires you to add this tax to the final price for a particular product or service, another state may not.
Davidoff & Associates has access to latest data from all state regulations, and can advise you on applicability of Sales and Use tax to your particular situation. Since Sales and Use tax is a major source of revenue for many states, it would be unwise to ignore this issue in hopes that no one notices.
Many of our clients, especially online retailers selling their products through Amazon, eBay or Etsy all over the US, recognize the importance of determining the nexus and then timely filing and paying Sales and Use tax, where appropriate. Some got burned by taking it too lightly – they had Sales and Use tax audits, which found thousands of dollars of uncollected sales tax and unpaid use tax. Penalties are severe and opportunities for an appeal are slim.
Don’t let Sales and Use tax non-compliance be your downfall. We at Davidoff & Associates understand Sales and Use tax regulations and can advise you on your particular sales mix and states where you have or may have a nexus. We can even put you on an autopilot compliance that includes assessment, collection, filing of returns and payment of Sales and Use tax, all without your hands-on involvement. All we need is periodic sales reports broken down by state, type of product and service, and taxable vs. non-taxable items.
Contact us at once to jump-start your Sales and Use tax compliance – you won’t be regretting this decision.