April 2022 Roundup: 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.

Nuts and bolts

A break in the wall. The International Data Corporation (IDC) says technology can help small and midsize businesses connect traditionally siloed activities such as accounts payable, inventory management, and tax compliance. Learn more.

Advice from auditors. You can’t prevent an audit. You can make an audit less painful by heeding lessons learned by four former auditors with decades of experience in the field. Learn more.

Audio files to ebooks. It can be extremely difficult to determine whether sales tax applies to digital goods and services. This state-by-state guide to the taxability of digital products can help. Learn more.

Glossary for international sellers. Customers in other countries are often just a click away, but before you make that first cross-border sale, it’s good to know what’s what. Learn more.

Hard facts facing software providers. From untangling the taxability of bundled transactions to figuring out how to properly source sales, SaaS companies face a unique set of sales tax compliance challenges. Learn more.

How to tax the clouds. In the coming months, Mississippi’s new Taxation of Remote and Internet-based Computer Software Products and Services Study Committee will set out to determine how the state should tax cloud-based software products and services. Learn more.

Modifying sales tax laws. Defying the governor’s wishes (and overriding his veto), the Kentucky General Assembly has extended sales tax to a host of new services, including body modifications and private investigations. Learn more.

One more day. Iowa lawmakers want to extend the annual sales tax holiday by one day and broaden the exemption to certain emergency preparedness supplies. Learn more.

Start at the source. Before you can calculate sales tax, you need to know which jurisdictions’ rules govern the transaction: the location of the seller, the location of the buyer, or a little bit of both. Learn more.

The best way to cut the fish. The tariff rate for imports of minced canned fish can be significantly lower than the tariff rate for canned fish that’s “not minced.” Learn more

Taxing online sales

Getting local. Although the U.S. Supreme Court decision in South Dakota v. Wayfair, Inc. doesn’t address local tax requirements, a handful of local tax jurisdictions now have local economic nexus laws. Learn more.

Other worlds. Many states haven’t yet said how (or if) goods sold in the metaverse should be taxed. The longer they wait, the more complexity they’ll encounter when they finally do weigh in. Learn more.

Wanna come check out my marketplace? There’s more to online marketplaces than Amazon, eBay, or even Walmart. New platforms now allow other established businesses to launch their own online marketplaces. Learn more.

The price of success. States are starting to require large marketplace facilitators to do more to stop organized retail crime. Learn more.

From the pump

The next generation of fuel. Tax policies played a big role in determining what fuels would power the automotive revolution. They’ll likely have a hand in shaping the fate of next-generation fuels as well. Learn more.

From the tap

Take note. Tennessee has adopted several new registration and reporting requirements for licensed alcoholic beverage sellers and fulfillment houses. Learn more.

Three years to last call. Bars, restaurants, and taverns in New York state are once again permitted to sell alcoholic beverages for delivery and takeout, just as they could during the pandemic-induced state disaster emergency that ended June 23, 2021. But unless state officials have a change of heart, the latest temporary provision will expire in three years. Learn more.

From the wire

Harder than your average exemption certificate. Managing sales tax exemptions is tough. Managing communications tax exemptions is tougher. Learn more.

High-profile hiccups. 5G technology is taking mobile phones to a new level. How the Internet of Things (IoT) will affect communications tax policy remains to be seen. Learn more.

Up in smoke

Open or closed? While it’s technically possible to sell tobacco and vape products online, what you can and can’t ship can vary considerably depending on the state, the shipping method, and other factors. Learn more.

Check out the Avalara resource center for more helpful information.

Recent posts
5G and the Internet of Things: Networked smart devices are here, tax policy is sure to follow
Selling goods in a virtual world can have real tax implications
Emerging online marketplaces must consider sales tax compliance

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