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More Businesses Are Turning to Automation to Manage Tax on Purchases

CPA Practice

All 45 states that have sales tax also have use tax, and certain industries, like manufacturing, construction, and hospitality, often face greater risks of noncompliance because the use tax rules for these businesses are more complex and can vary from state to state.

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What ‘Patchwork’ eCommerce Taxes Mean For Black Friday – And Beyond

PYMNTS

There have been some notable efforts by states to take some of the guesswork out of the occasion. Maryland, said Peterson, has constructed a database that lists all the items that are taxable in the state. Audits may increase as states share data with one another about smaller firms that log sales in several locations.