a concept of sales tax

Sales, Use & Transaction Tax Services

There are 50 states, but over 11,000 state and local taxing jurisdictions and their regulations and laws change frequently.

Then the US Supreme Court made things more complicated. In June 2018 they made a landmark ruling, known as the Wayfair decision, in which a company can have a sales tax obligation when they do not have a physical presence!!! This is called Economic Nexus. If this is not enough what qualifies as having a physical presence has expanded.

Having a physical presence is no longer confined to having an office or store but having an independent sales agent can create a physical presence in a state. Some states have made it that having an independent social media influencer or attending a trade show creates a physical presence; thus, required to collect and remit sales tax. This is when a Nexus study is very important.

Here is a short list of what a company needs to be compliant in Sales Tax (this list is not all inclusive):

  1. Do you know what is involved in a Nexus study?
  2. Each state has their own definition of what makes a physical presence. Do you know all the rules in all 50 states?
  3. If you are required to collect sales tax, do you collect it at Origin or Destination?
  4. What states have the new Economic Nexus requirement? At what sales level does it kick in? It is all different.
  5. What states are Home Rule states? In Home Rule states both a state return and local sales tax returns are required.
  6. If you must collect sales tax, are you now required to have a business license?
  7. Do you know if you sell through Amazon and Alibaba, you still might have a sales tax collection and remitting requirement?
  8. Is Shopify coding your sales correctly for sales tax compliance?

How can a small or middle size company be on top of 11,000 regulations and laws? This is where The John Ellis Company comes to help.

Services Provided

  • Nexus studies. A study of where your company has physical and economic presence.
  • Process and procedures consulting to make sure you are compliance in all states.
  • Multi-State Sales & Use Tax consulting and compliance
  • Multi-State Transaction Taxes
  • Unclaimed Property
  • Tax Audit Defense and Voluntary Disclosure Agreements
  • Our affiliate company can assist in taking advantage of all applicable Sales Tax Credits