Monthly roundup of tax laws you need to know

October 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

Make your sales tax holiday plans now. From school supplies to energy-efficient appliances to diapers, consumers can save on almost anything if they plan ahead for sales tax holidays. Make sure your business is prepared with the latest sales tax holiday guide.

Finally, a use for all that Dogecoin you have lying around. As of September, taxpayers in Colorado can use cryptocurrency as payment for state taxes, including income tax, sales and use tax, and more. Other states, like Arizona, California, and New York are hopping on the blockchain train, and the Biden administration is working to “ensure responsible development of digital assets.” 

Small business sales tax 101. Running a small business requires you to become an expert in many things almost overnight: marketing, website building, finance, inventory management, and so on. Luckily, you don’t have to be an expert in sales tax for your small business, you just have to read this blog

Check your takeout receipts. Delivery customers in the Centennial State may have noticed an extra charge on their receipts and invoices. A fee on retail deliveries in Colorado took effect on July 1, and it caught many businesses off guard. Find out which types of businesses and transactions are affected

Economic nexus on the island. Puerto Rico has joined Washington, D.C., parts of Alaska, and 45 states in adopting economic nexus laws. This means businesses that make over $100,000 in total gross sales or 200 transactions in the Island of Enchantment will have to register with the Puerto Rico Department of Treasury and collect and remit sales tax. Find out how this change affects marketplace sellers and other companies that do business in Puerto Rico.

Tune in to HTS codes. If you ship internationally, you might be familiar with HTS — harmonized tariff schedule — codes. These are codes assigned to goods entering the United States. You may have also heard of HS codes, Schedule B codes, or customs duties. But what do all these words mean, and how does tax fit into it?

Get connected. Now it’s even easier for customers to implement Avalara solutions. We’ve acquired connector technology, hired a development team, and licensed other business assets from AppKnit to make integration of our cloud-based tax tech simpler. If you use Oracle Fusion Cloud ERP, E-Business Suite, JD Edwards, or PeopleSoft, you’ll want to read more.

Talk may not be cheap. Some states have an easier time taxing communications products and services than others, and it all depends on how they define them. When it comes to streaming services, some jurisdictions already had laws on the books that enabled them to collect tax, but others are running into legal roadblocks.

Tax-exempt sales are not exempt from tax headaches. Find out what to do if your vendors or buyers don’t have the right certification, or if you’re having trouble managing exemption certificates manually.

Tax on treats. Not every state taxes candy, and each state has its own rules and definitions for taxing our favorite Halloween treats. Get this state-by-state guide and avoid getting spooked by sales tax this season.  

You owe it to yourself to get invoices right. Calculating taxes isn’t always straightforward, and how you prepare your invoices can affect how much tax you end up paying on an item. Find out what information you should consider when billing customers for your goods and services.

For extra (store) credit. For retailers, returns and exchanges are inevitable. Customers have come to expect the returns process to be as simple as the purchase process. But how can retailers make a policy that minimizes headaches for them and keeps customers happy? Here are 10 tips for creating a returns policy that checks out.

From the tap

Battle in the Buckeye State. Currently, out-of-state wine retailers cannot ship directly to consumers in Ohio, but retailers in the state can ship to other states. Unfair? An Ohio wine aficionado and a Chicago-based wine seller thought so and took the state to court over this regulation. Learn more about the ruling.

Making a fulfillment house a fulfillment home. Last year, Louisiana issued cease-and-desist orders to fulfillment houses shipping wine into the state. Now, the state is making a change — allowing fulfillment houses to ship wine into the state and implementing new reporting requirements.

From the accounting desk

It’s time to account for growth. Should you offer client accounting services? More and more accounting practices are adding CAS to their client offerings and it’s a good way to grow your firm. Here’s what you need to consider when you’re creating a CAS practice. 

 

Check out the Avalara resource center for more helpful information.

Recent posts
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