TaxConnex

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Refunds and sales tax

TaxConnex

Many shoppers went online this season to find the perfect gift. Its a safe bet that few of them hit the target, which leads to returns, which leads to refunds from sellers, to which leads to the nagging question: Does sales tax get refunded along with the purchase price? The simple answer is yes. The more accurate answer, particularly when something as complex as sales tax gets involved, is: Probably, but watch the details.

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How to validate a resale certificate

TaxConnex

An exemption certificate is one of the most useful tools that your online company has for sales tax. This little piece of paper is used to exempt an otherwise taxable transaction from sales tax. The overall concept is that the end user incurs sales tax and that all sales of tangible personal property are taxable unless specifically enumerated, usually in legislation.

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Sales tax and due diligence in an M&A

TaxConnex

Those involved in mergers and acquisitions often get understandably excited about the deal, especially execs who stand to see their business power (and paychecks) expanded. These execs might also go into the deals knowing all about the familiar M&A landmines such as employees’ reactions or overpaying the target company. Other potential deal-killers, though, might get less scrutiny in due diligence – including problems with a target company’s past sales tax compliance.

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Sales tax risk: What to ask (part 2)

TaxConnex

Assessing a company’s sales tax risk and exposure starts (and maybe ends) with the right questions. As we saw in a previous blog, these questions cover a range of topics and hinge on knowing many sales tax terms. Let’s look at some of the questions discussed in our recent webinar “What to Ask Your Clients to Identify & Manage Their Sales & Use Tax Risk.

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Future sales tax trends

TaxConnex

Every new year brings a ton of developments in all varieties of tax. Sales tax driven by burgeoning eCommerce, dynamic kinds of nexus and a steam of new tech and products that jurisdictions see as lush sources of revenue again has more than its share of trends on tap for 2025. Heres a look at a few. More tax in more states. New sales taxes scored some wins but hardly ran the table on last election day: Voters in plenty of communities said no to new or increased sales taxes in 2025.

Sales 147
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Stripe and sales tax: What you need to know

TaxConnex

Recent developments in payment platforms and tax regulations have brought increased attention to the IRS reporting requirements triggered by lower income thresholds. With these changes in mind, it's important to consider how using a payment platform impacts the collection of sales tax. One such platform is Stripe, a payment processor that works and worldwide and allows merchants to receive payments via debit or credit cards, mobile wallets, ACH and buy-now pay-later services.

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Automation's place in sales tax compliance

TaxConnex

AI and automation are all the rage, but does it have a place in your sales tax compliance process? If so, where? For many businesses, software and automation can serve an important purpose in the compliance process. Businesses need a way to calculate the correct sales tax to charge in states where they have a sales tax obligation, and for this, automation can be a great solution.

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