Manufacturing companies must consider all moving pieces when calculating sales tax liability. From exempt equipment repairs to documenting vendor certificates, there is a lot of information that needs to be tracked in order to remain compliant.
Source Advisors can help you identify where you have sales presence (nexus), determine the taxability of your products in specific states, and form the best compliance strategy that meets your specific needs so you can focus on running your business.
The best strategy to stay ahead of risks or liabilities is to know where your business has nexus exposure. The tax specialists at Source Advisors will conduct a comprehensive nexus analysis to determine where your company has reached economic and physical nexus and whether your products are taxable.
Once this information is established, the team will help you understand your reporting requirements, implement automated software solutions if needed, and strategically plan for the future to avoid penalties and fines.
This can easily lead to sales tax errors for the manufacturing industry. Automated tax software can provide real-time tax calculations and easily manage important documents, like certificates.
There are several reasons why sales and use tax overpayments occur including vendor errors, missed exemptions, and lack of internal resources to capture errors. Explore our Reverse Sales & Use Tax Audit services to recover overpaid sales and use taxes.
It’s not uncommon for manufacturers to miss out on Federal and State-level R&D Tax Credits and inventory tax credits.