Industries | State and Local Tax

Sales Tax for Retailers

Sales Tax for Retailers

When retailers experience business growth, new tax responsibilities may arise and feel burdensome. Maybe you’re selling through a brick-and-mortar, online store, or marketplace like Amazon or Wayfair. All of these sales channels present unique challenges to sales tax compliance.

Our tax specialists can assist you with conducting a sales tax nexus analysis, reviewing product tax codes, and implementing automated technology solutions for your specific needs.

Retail Technology

With so many payment processing solutions, e-commerce platforms, and accounting systems in use, it is important to understand which sales tax compliance strategy and automation tool is best for your business’s tech stack.

Having the right sales tax expert with a deep understanding of the top retail and accounting technologies can save you time and make your compliance process much smoother!

Comprehensive Nexus Study

Nexus occurs when a business entity forms a physical or economic connection with a state. It may be difficult to understand where and when your company has an obligation to collect and remit sales tax. The tax specialists at PMBA will help you review your business activities by conducting a thorough sales tax nexus analysis and determine where and when nexus occurs.

Sales Tax Audits

In the event a sales tax audit occurs, PMBA can handle the full audit process for retail businesses, from the pre-audit review through the settlement process.

Audits may occur when:

Sales Tax Compliance

Our team will help you with your day-to-day sales tax needs, such as identifying where nexus occurs, preparing and filing returns, and implementing an automated tax solution.

As an Avalara Certified Services Partner, we’ll help you implement the best compliance strategy for your business. Our team will provide ongoing support post-implementation to ensure that your staff is able to manage the solution for any future product or tax changes.

Our experts are also highly experienced in TaxJar and Vertex technologies.

Avoid These Common Tax Errors Made by Retailers

Relying on Past Sales Tax Rules

State and local tax rules can change with exemption updates, state boundary shifts, and more. If retailers aren’t updating in real-time, they may be out of compliance with new sales tax requirements.

Miscategorizing Products

It may be easy to assume that products within the same category are taxed similarly. However, something as simple as packaging can impact a product’s taxability.

Not Utilizing Sales Tax Holidays

Sales tax holidays are helpful as they are often used to boost consumer spending. Unfortunately, there isn’t a standard list to follow, so retailers are responsible for tracking and taxing their products accordingly.

The Source Advisors Advantage

State and local tax services at Source Advisors are completed by distinguished experts with decades of cumulative experience solving large and small tax challenges. Put Source Advisors’ track record of successful strategies and solutions to work for you. Schedule your free 30-minute, no-obligation consultation with our specialized team of professionals today.