More Related Content
Similar to Sales Tax Basics for Small Business Owners (Manta.com) (20)
More from Manta (19)
Recently uploaded (9)
Sales Tax Basics for Small Business Owners (Manta.com)
- 1. Crowds with Cash Alternative Financing is a Mixed Moneybag of Opportunity for Small Business Hello! Welcome to Mantas Small Business Expert Series Thanks for joining us today. Well get started right at 2 p.m. EDT #mantaexperts Todays webcast is sponsored by
- 2. Sales Tax Basics for Small Business Owners Everything you need to know to make sales & use tax compliance easy #mantaexperts Todays webcast is sponsored by
- 4. @carie_ferg Help Q&A Resource List How It Works @Manta
- 5. The Story Sales tax helps state deficits Sales tax compliance challenges Cost of BUA (business as usual)
- 6. Meet the expert: Mark Giddens Sales vs. use tax Determine nexus Technologys impact on sales tax Avoid sales tax audits What you want to talk about: Q&A with Mark Lets Talk About
- 7. Meet Mark Giddens Click on the speaker widget to learn more about Mark.
- 8. Sales taxIntrastate transaction, collected by the seller on the gross receipts from a retail sale Sellers use taxInterstate transaction, where the seller is compelled to collect tax because of Nexus CONSUMER use tax Purchases of equipment and supplies from out-of-state for use in business Withdrawals of inventory for taxable use such as R&D, promotional materials, warranty repairs, etc. Sales vs. Use Tax
- 9. Auditor red flags What is and isnt exempt? Burden of proof: consumer or seller? Sales & Use Tax: Exemption Certificates
- 10. Nexus: What is it? The right questions to ask Nexus rules and Amazon laws apply to everyone
- 11. Quill vs. North Dakota Nexus-creating activities Amazon Laws The Broadening of Nexus Photo courtesy of istockphoto.com.
- 12. Nexus-Creating Activities (Examples) Multi-state locations Maintenance/service/repairs Own/lease real property Hosted Data Centers Field sales/service staff Charge Licenses/royalty/fees Direct and/or online sales Maintains inventory Affiliates Tradeshows Commissions to resellers (1099s) Investors/board members Marketing/Web advertising Drop shipments
- 13. Close isnt close enough The problem with ZIP codes Jurisdiction Assignment Greenwood Village, Colo., has one ZIP code, but four different sales tax rates!
- 14. Technologys Impact: Before You Automate Estimate tax leakage Determine tax process costs Cash flow considerations
- 15. Saves time Increases accuracy Mitigates risk Improves efficiency Increases profitability Technologys Impact: Automate
- 16. Technologys Impact: What to Automate Calculate, report, return, remit Taxing jurisdictions zip code boundaries On average, accounting professionals spend *11 hours a week filing sales tax returns and remitting payments. This is time that can be reclaimed and used elsewhere if your company automates the sales and use tax process. *Wakefield Research 2014
- 17. Avoid Sales Tax Audits Return information that doesnt match other records Mistakes found in previous audit Previous finding of exemption certificate misuse Not reporting use tax Failing to file a return Failing to report sales Taking excessive credits or exclusions on a return Filing returns with errors
- 18. Do a nexus study Stay up-to-date with rate, rule, and boundary changes Report consumers use tax Be compliant from day one, especially new businesses Automate with technology An understanding of your filing requirements Calculations that are rooftop accurate Product taxability coverage Detailed sales records A process for managing exemption certificates You should: Make sure you have: Avoid Sales Tax Audits
- 19. Know the difference: Services on tangible personal property Real property services Professional services 19 Avoid Sales Tax Audits: Services States that do tax (many) services *Connecticut *Hawaii *New Mexico *South Dakota *West Virginia States that do not tax (many) services *Alabama *Florida *North *Carolina *Oklahoma *Utah Hint! States often define taxable services differently.
- 20. Open the resource list to get more information about our upcoming and on-demand webinars. Dont miss our upcoming webcast series, each 10 minutes long, on the following: Oct. 6 - 10 Sales Tax Rules Oct. 13 - Tax Tips for Online Sellers Oct. 20 - Avoid Sales Tax Audits Ask the Expert: Mark Giddens Todays webcast is sponsored by Visit community.manta.com/ to Ask the Expert
- 21. Manta believes in empowering small businesses to achieve success. Were inspired by your determination and energy. And we understand that every company is unique. We strive to provide the marketing tools and educational resources you need to stand out, connect with your customers and your peers, and grow your business. Send us a note and let us know what youd like to learn from upcoming webinars like this one. events@manta.com