Post on 21-Feb-2017
Crowds with CashAlternative Financing is a Mixed Moneybag
of Opportunity for Small Business
Hello!
Welcome to Manta’s Small Business Expert
Series
Thanks for joining us today.
We’ll get started right at 2 p.m. EDT
#mantaexperts Today’s webcast is sponsored by
Sales Tax Basics for Small Business Owners
Everything you need to know
to make sales & use tax compliance easy
#mantaexperts Today’s webcast is sponsored by
CEOWelcome
John Swanciger
@carie_fergHelp Q&A
Resource List
How It
Works
@Manta
The Story
• Sales tax helps state
deficits
• Sales tax compliance
challenges
• Cost of BUA (business as usual)
• Meet the expert: Mark Giddens
• Sales vs. use tax
• Determine nexus
• Technology’s impact on sales tax
• Avoid sales tax audits
• What you want to talk about: Q&A with Mark
Let’s Talk About
Meet Mark Giddens
Click on the speaker widget to learn
more about Mark.
Sales tax—Intrastate transaction, collected by the seller on
the gross receipts from a retail sale
Seller’s use tax—Interstate 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
• Auditor red flags
• What is and
isn’t exempt?
• Burden of proof:
consumer or seller?
Sales & Use Tax: Exemption Certificates
Nexus: What is it?
• The right
questions to ask
• Nexus rules and
Amazon laws apply
to everyone
• Quill vs. North Dakota
• Nexus-creating activities
• “Amazon Laws”
The Broadening of Nexus
Photo courtesy of istockphoto.com.
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
• Close isn’t close enough
• The problem with ZIP codes
Jurisdiction Assignment
Greenwood Village, Colo., has one ZIP code,
but four different sales tax rates!
Technology’s Impact: Before You Automate
• Estimate tax
“leakage”
• Determine tax
process costs
• Cash flow considerations
• Saves time
• Increases accuracy
• Mitigates risk
• Improves efficiency
• Increases
profitability
Technology’s Impact: Automate
Technology’s 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
Avoid Sales Tax Audits
Return information that doesn’t
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
• 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
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.
Open the resource list to get more
information about our upcoming and
on-demand webinars. Don’t 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
Today’s webcast is sponsored by
Visit community.manta.com/ to Ask the Expert
Manta believes in empowering small businesses to achieve
success. We’re 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 you’d like to learn from
upcoming webinars like this one.events@manta.com