Multi-State Sales Tax
Every state has its own unique set of sales and use tax laws. These laws have evolved and have been modified over many years. Some states impose tax on one type of sale, while other states say that the same sale is tax exempt, and still other states may partially exempt the sale based upon how the customer is going to use the item being sold. How is a business supposed to determine what to charge sales tax on?
We will work with you to gain an understanding of your business and the nature of the products you are buying and selling. We have the expertise to research and determine the proper sales and use tax treatment of the transaction in question. We will also advise you which states have beneficial tax rules for you and which states may impose more sales and use taxes upon you and your business. In addition, we will use our experience to help you LEGALLY structure a transaction, in order to minimize or eliminate the sales and use taxes that might be due.
When you ask us how sales and use tax applies to a transaction, we will deliver to you a straight forward, clear tax matrix (grid) detailing how the sales and use tax laws apply in the states that you are doing business. A tax matrix commonly details things such as what documentation you need to obtain from your customers in order to avoid collecting sales tax, or how you can structure a transaction to legally avoid paying sales and use tax on a purchase. In addition, we will reference the matrix to the applicable statute or ruling that we based our interpretation on.