Sales and use taxes affect nearly every business type. And we all have to pay sales tax when we buy things, unless we live in one of the five states that do not have a sales tax: Alaska, Montana, Oregon, New Hampshire, and Delaware. While we live in these United States, the states are not at all united when it comes to sales tax, either in its rate or application.
If you are a business owner operating within a single state with a single business activity, years of experience has helped you understand sales tax in your home state. As a business owner, you collect sales tax on your transactions, but, especially as states become more strapped for cash, auditors are looking to ensure that you have also paid sales tax on your purchases. Making retail sales and collecting the associated sales tax seems easy enough; however, with all the exemptions your customers claim and the accompanying documentation, that seemingly simple process become complex. Even when you sell an exempt service, you must concern yourself with sales tax or use tax on the purchases you make. Add in the intricacies of determining in which state or states you have a business purpose – or nexus – and calculating your sales tax obligations becomes even more daunting.
Whether you are a manufacturer concerned about your exemptions, a retailer concerned about exemption documentation, or a non-profit organization concerned about collecting the required sales tax, Kemper CPA Group is highly experienced in helping you navigate the murky waters of multi-state sales and use tax. We have state tax specialists who make it their business to stay current on the discipline of sales and use tax for our clients. Just ask them!