July 2021 Roundup: Sales tax laws you need to know

While you focus on your business, we stay on top of legislative and policy changes that can affect your tax compliance.

Economic nexus laws are leaping across borders, real money is pouring into the virtual world, and sales tax holidays are causing consternation. Read about all this and more below.

Taxing times

Because sales tax holidays weren’t challenging enough.

Counties and municipalities aren’t required to participate in Alabama’s sales tax holidays. They’re supposed to let the Alabama Department of Revenue know their plans at least 30 days prior to the start of a tax-free period, but unfortunately, some notify the department mere days before the event itself. Learn more.

 

It wasn’t quite the end of the world as we know it.

A new report from the Urban-Brookings Tax Policy Center shows there’s no one answer to the question of how COVID-19 is affecting the fiscal health of states. Learn more.

 

The thick of sales tax holiday season.

Sixteen states are providing 17 sales tax holidays during the month of August. Retailers will need a holiday of their own after keeping track of all the tax-free periods and complying with each state’s requirements. Learn more.

 

Taxing online sales

Canada takes a lesson from its southern neighbor.

As of July 1, 2021, non-resident vendors whose annual sales of taxable goods in Canada exceed $30,000 CAD may need to register for Goods and Services Tax and/or Harmonized Sales Tax. Learn more.

                                                                                                                                       

Puerto Rico jumps on the Wayfair bandwagon.

Like every other state with a sales tax, Washington, D.C., and some localities in Alaska, Puerto Rico has adopted an economic nexus policy that requires certain out-of-state sellers to register with the tax department and comply with the territory’s sales tax laws. Learn more.

 

Nuts and bolts

Because I said so.

Figuring out which business licenses you need to open and operate a business can lead you through a perplexing labyrinth of local, county, state, and federal rules, regulations, and interpretations. Learn more.

 

Intersecting laws can cause confusion. 

States must weave new laws into the fabric of existing laws and address any contradictions or inconsistencies that arise. Thus, several states have clarified how their marketplace facilitator laws impact the exemption for isolated or occasional sales. Learn more.

 

Money, money, money.

Cryptocurrency miners ousted from China need a new home, and Kentucky hopes new sales tax incentives related to mining will lure them to the Bluegrass State. Learn more.

 

Not a one-stop-shop.

Opening and owning a new convenience store typically entails a pallet-full of business licenses, permits, and tax obligations. Learn more.

 

Beyond the border

Amped up.

Since electronic invoicing mandates have surged in recent years, U.S. businesses need to know where they exist, how they work, and the benefits of swapping paper for digital invoices. Learn more.

 

The ins and outs of value-added tax (VAT).

VAT is a broad consumption tax imposed by many countries across the globe. U.S. consumers experience it much like a sales tax, but VAT looks quite different behind the scenes. Learn more.

 

You scratch my back, I’ll scratch yours.

Free trade agreements set advantageous trading practices between two or more countries, at least for certain products. But are their downsides to applying for treaty status? Learn more.

 

From the tap

And the cheese (or the Garden State) stands alone.

New Jersey will soon be the only state in the nation with a production cap on direct-to-consumer sales. Learn more.

 

Neat or on the rocks? Where your drink of choice can be taken to go.

Alcohol-to-go laws in many states have been a lifeline to restaurants and bars throughout the COVID-19 pandemic. Now that restrictions have for the most part lifted, states must decide whether to extend alcohol-to-go policies or allow them to expire. Learn more.

 

From the wire

Communications taxes aren’t just for communicators.

Like other taxes, communications taxes often trail innovation. If you’re selling the latest and greatest services, it may be hard to determine which taxes apply. Learn more

 

New technologies necessitate new tax schemes.

Many companies remain unaware that their transactions are liable for communications tax, and the impacts can be severe. Learn more.

 

Wacky tax roundup

Forget all that you see, it’s just a fantasy.

Life in the virtual world has real significance for some people. It has real tax consequences, too. Learn more.

 

Texas-sized troubles surface over sales tax.

Two sales tax issues are causing a rift in Texas: The upcoming shift to destination sourcing for online sales by in-state sellers, and the Texas Comptroller’s interest in taxing payment processing services. Learn more.

Check out the Avalara Resource center for more helpful information.

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