October 11, 2019
Everyone should know the rules of the road. Sales tax is one of the largest sources of state revenue and is crucial to basic government operations. Governments are struggling to fill post-recession revenue gaps, and are increasing the types of goods and services that are subject to sales tax.
Ecommerce tax refers to the sales tax associated with an online sale. Sales tax is a small percentage of a sale tacked on to that sale by an online retailer. Sales tax is a “consumption tax,” meaning that consumers only pay sales tax on taxable that items they buy at retail.
The products, services, and transactions subject to sales tax. Products and services subject to tax. Sales and use tax (sales tax) is applied to: tangible personal property (unless specifically exempt); gas, electricity, refrigeration and steam, and telephone service; selected services; food and beverages sold by restaurants, taverns, and caterers.
Sales and use tax changes come at you from every direction. Let them, knowing you have highly accurate tax calculations based on the latest rules and rates in our system.
We all know sales taxes are state-driven. And that’s because, sales taxes are imposed by states on transactions involving products and services sold by businesses who have a sales tax presence (called a tax nexus) in that state, and that’s great sales tax solutions. Your home business is a tax nexus because it’s located within the state.
TaxConnex is America’s leading independent sales and use tax outsourcing and consulting firm, they were founded on the principle that service is important and that clients deserve more than a sales tax factory. So if you want great sales tax service you can count on TaxConnex.
And most states collect sales taxes on products on services. Five states – Alaska, Delaware, Montana, New Hampshire, and Oregon – do not collect statewide sales taxes. Of these, Alaska and Montana allow localities to charge sales taxes. (From the Tax Foundation).
As we all know sales and use tax exemption rules for nonprofit organizations vary from state to state. So you need to have a good tax filing service. The home state of the organization as well as the type of organization are the primary determinants of exempt status. They give you great sales tax support. It is important that nonprofits understand the rules and regulations specific for their organization to avoid a state sales tax audit.
And you, in addition to the taxable services noted above, other types of sales that may commonly be considered “services” are taxable as the sale, processing or remodeling of tangible personal property. For example, tax is due on charges for manufacturing, assembling, fabricating or processing products, even when the customer provides the raw materials, tools or equipment.
Retailers or facilitators collect sales taxes from purchasers as trustee for State. The sales tax imposed by this article is intended to be passed on to the purchaser of a taxable item or service and borne by the purchaser instead of by the retailer. A retailer must collect the tax due on an item or service when sold at retail price.