Top Four Sales Tax Risks Facing Retailers - Taxify
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Top Four Sales Tax Risks Facing Retailers

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Top Four Sales Tax Risks Facing Retailers

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Sales tax compliance filing rules and regulations are dynamic and complicated. Here are some complex areas of product taxability issues to understand:

  • Taxing the non-taxable. Make you that you avoid taxing products that are non-taxable, such as unprepared grocery items, baking ingredients and manufactured goods intended for resale.
  • Ignoring emerging technology. Streaming music and movie services are considered taxable by several states, including cloud-based computer software.
  • Forgetting sales tax holidays. Sales-tax-free events held around themes, such as back- to-school or Black Friday, energize consumer spending and increase inventory turnover.
  • Overlooking sourcing rules. The taxability of a sale, as well as determining which tax rates to apply, will depend on if the state is origin-based or destination-based as well if the sale is made intra-state, or is being sold across state lines.

It is vital that retailers either keep current with sales tax management or outsource it to providers with expertise in the industry.

Have some more questions? Let us know! We’re happy to help, and we love talking taxes.

Are you an Amazon seller? Check out our Amazon site!

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