The purpose of this white paper is to provide an overview of the state sales and use tax issues facing large and small companies today and to provide a road map for companies to see their way through the complexity.
Move to e-commerce long overdue by US Secretary of State offices. The era of electronic filing has been with us now for twenty years. The world’s first fully electronic online business register emerged in New Zealand back in 1996. Since then, many uniform laws have been drafted in the U.S. to encourage the use of online record submissions and searching.
This white paper sets out the reasons for government to adopt contemporary technology solutions to deliver electronic registries.
Move to e-commerce long overdue by US Secretary of State offices. The era of electronic filing has been with us now for twenty years. The world’s first fully electronic online business register emerged in New Zealand back in 1996. Since then, many uniform laws have been drafted in the U.S. to encourage the use of online record submissions and searching.
This white paper sets out the reasons for government to adopt contemporary technology solutions to deliver electronic registries.
Free eCommerce tutorials and course. What is eCommerce and benefits and advantages. How to use mobile ecommerce to promote and Increasing ecommerce business.
What to expect from the New York Privacy ActVISTA InfoSec
In the recently proposed bill of the New York Privacy Act in the House and Senate, businesses may soon have to gear up for this new data privacy law. If enforced, the law may severely impact businesses, restricting their operations in the way how they collect, use and share consumer’s personal information throughout the State.
In this session we'll provide a quick roundup of the latest issues involved in sales tax compliance including new developments with Amazon Laws and Nexus, US Congressional Action, mobile Commerce, e-Filing and VAT.
Advertising Tax Impact Accomplishments And The FutureAffiliate Summit
Discussion on the Advertising Tax by industry leaders that have played a key role in organizing industry advocates and educating legislators on the impact of state tax nexus legislation.
Brian Littleton, President / CEO, ShareASale.com (Twitter @Brianlittleton) (Moderator)
Karen Garcia, Partner, GTO Management (Twitter @karengarcia)
Beth Kirsch, Volunteer, Performance Marketing Alliance (Twitter @bethkirsch)
Melanie Seery, President, Affiliate Voice (Twitter @mellies)
Free eCommerce tutorials and course. What is eCommerce and benefits and advantages. How to use mobile ecommerce to promote and Increasing ecommerce business.
What to expect from the New York Privacy ActVISTA InfoSec
In the recently proposed bill of the New York Privacy Act in the House and Senate, businesses may soon have to gear up for this new data privacy law. If enforced, the law may severely impact businesses, restricting their operations in the way how they collect, use and share consumer’s personal information throughout the State.
In this session we'll provide a quick roundup of the latest issues involved in sales tax compliance including new developments with Amazon Laws and Nexus, US Congressional Action, mobile Commerce, e-Filing and VAT.
Advertising Tax Impact Accomplishments And The FutureAffiliate Summit
Discussion on the Advertising Tax by industry leaders that have played a key role in organizing industry advocates and educating legislators on the impact of state tax nexus legislation.
Brian Littleton, President / CEO, ShareASale.com (Twitter @Brianlittleton) (Moderator)
Karen Garcia, Partner, GTO Management (Twitter @karengarcia)
Beth Kirsch, Volunteer, Performance Marketing Alliance (Twitter @bethkirsch)
Melanie Seery, President, Affiliate Voice (Twitter @mellies)
Moving to Subscription Billing? What You Haven’t Considered:BluLogix
Maybe you’ve thought about transitioning to a subscription model or an “as-a-service” type of business because you’re interested in creating recurring revenue. Before you do, there’s a multitude of potential pitfalls that most companies making the switch haven’t even considered.
Webinar: Sales Tax Compliance and Your Miva Merchant StoreAccurateTax.com
Discusses sales tax issues, especially compliance with tax laws, and how it affects Miva Merchant retailers. Includes demo of AccurateTax's TaxTools software for Miva Merchant.
How to Leverage SAP To Meet Withholding Tax Challenges-completedJade Global
Join us in this SAP Webinar hosted by Jade Global to understand how you can reduce risk and increase efficiency by effectively using SAP to manage Withholding Tax. Read more.
How Accounts Payable Automation and Agility Drive Long-Term Business Producti...Dana Gardner
Transcript of a discussion on why business leaders need to prepare now to optimize and automate accounts payable functions to elevate overall financial situational awareness.
3 Revenue and Compliance "Must-haves" to Go from Series A to IPO with TaxJar'...saastr
Don’t get caught off-guard raising your next round or preparing for an IPO. It’s more than just winning customers, it’s about staying ahead of fraud, risk, and compliance. Join us for a conversation about the most overlooked finance and compliance items when scaling your SaaS company.
It is indeed odd that in occasions of remarkable technological progress, we typically never think twice inside the situation of deciding to buy some “cool” technological gadget, which often will most likely not give us any financial advantage in exchange; but we have grow to be rather hesitant to dedicate our funds on contemporary engineering which has truly proven its worth. Getting said that, the actual truth is the fact that most staff change opinion in the quick time, when they uncover a document in just a number of seconds and uncover for themselves how quick and simple it is to discover a piece of content with their company’s new document management application.
Visit us for more information http://www.askdebthelp.com/
White Paper - Charting the course, An odyssey of Operational TransformationPablo Junco
Operational Transformation (OT) is about changing enterprise’s business operations to serve their digital customers’ needs and expectations.
OT is Core to every Enterprise’s Digital Transformation journey focusing on operational excellence with a customer centric approach.
Enterprises are increasingly rely on Emergency Technologies such as Cognitive Services, Intelligent Agents/Apps, Internet of Things, and Value-Exchange Apps (Blockchain) to create differentiating operational digital capabilities to drive sustainable business & shareholder value.
Stitely & Karstetter, PLLC needed a way to optimize workflow in order to save time and gain a competitive advantage. To increase profit margins, the firm switched from Lacerte® tax preparation software, which it had used for 14 years, to CCH Axcess — the award-winning, cloud-based tax preparation, workflow and firm management solution. Visit CCHGroup.com/DigitalTaxWorkflow to learn more!
Chances are, life has your clients asking questions that go beyond taxes. Here are some key facts relating to life events that your clients may be facing. Wolters Kluwer’s Financial and Estate Planning solutions give you what you need to advise your clients on anything life holds.
The Affordable Care Act (a.k.a. ObamaCare) began March 21, 2010. It represents the most significant regulatory overhaul of the United States health care system since the passage of Medicare and Medicaid in 1965. Here are some key facts relating to the new law and the U.S. health care system.
Communication and information sharing has evolved tremendously, especially in past 50 years. Take a look at the history of communication and see how Wolters Kluwer is at the forefront of innovation in this digital age.
There’s no doubt that sales tax management is complex. The good news is that our solutions put you in control. When you have accurate, timely data, smartly engineered processes, and applications that are a pleasure to use, then you have the business efficiency and peace of mind you need to focus on your business goals.
For today’s firm, change is constant. The ever-evolving realities of the profession inspired Wolters Kluwer to explore two major questions in our 2014 Accounting Firm Preparedness Survey. First, what trends will have the most significant impact on accounting firms and their clients over the next five years? Second, how well prepared are accountants to take advantage of these trends?
Your firm needs to be committed to protecting information assets, including personal data and client documents. As a trusted advisor to our clients, the expectation is that we are aware of threats and are guarding their data. Data privacy and information security are fundamental components of doing business today, no matter how large your firm is.
In this paper we will look at three specific ways of protecting our clients:
1. Protection through our ability to research and improve intellectual capital
2. Protection through policies, procedures and processes
3. Protection by securing client data
Many people believe that services are exempt from sales and use tax, but in reality, only a few states exempt all services. Furthermore, only a few states actually tax all or almost all services, consistent with the imposition of their gross receipt tax, or based on the underlying presumption of taxability. When determining taxability of services, the biggest compliance challenge for most businesses is dealing with the majority of states that fall somewhere between the two extremes.
There are four main components in this analysis:
1. Nexus issues relevant to the service industry
2. Prevailing taxable or nontaxable presumptions relative to services
3. General categories and definitions of services
4. Taxability examples and use cases relative to services
The accounting profession has felt the impact of change. Over the past several years, operational changes in workflow and process have dramatically altered the scope of the accountant’s role. The profession’s workforce is aging, underlining the importance of succession planning and talent management. Additionally, as the digital universe doubles in size every other year, many firms struggle to keep pace with the latest technology trends.
For today’s firm, change is constant. And across the entire tax, accounting and audit profession, the forecast calls for even greater shifts in people, processes and technology.
These ever-evolving realities inspired Wolters Kluwer, CCH, a strategic partner to accounting firms, to explore two major questions in the 2014 Wolters Kluwer, CCH — Accounting Firm Preparedness Survey.
Managing a professional services firm is hard work. Firm leaders must juggle marketing, business development, client service, staff recruiting, development and retention to a successful outcome for everyone involved. There is one thing that
firm leaders must feel comfortable with that links all of these firm management initiatives together — technology.
Starting a new firm from the ground up takes guts, hard work and a great deal of planning. Just ask Ryan Hagan, a founding partner of Altruic Advisors, a CPA firm only serving nonprofit organizations with offices in Colorado and Michigan, and a client roster made up of small to midsize nonprofit organizations.
Evaluating the ROI of cloud-based solutions versus on-premise software can sometimes feel a bit like comparing apples to oranges. This white paper provides an overview of the costs and savings associated with a migration to a cloud-based model, including:
- Access differences
- Hardware costs
- Ongoing maintenance, security and support
- IT staffing levels
In the last few years, the cloud has been steadily revolutionizing software delivery to corporate end-users
across multiple industries, ranging from banking to Customer Relationship Management (CRM). The
accounting profession is no exception.
Your small business clients need year-round bookkeeping services. With Client Accounting Suite Premier (CASP), you can fill that need and earn extra revenue. CASP is a complete, reliable accounting solution — simplifying your work so you can build stronger client relationships.
Does your staff lose time and patience searching for information, client files and documents? Organizing, storing, searching for and retrieving documents should be easy to do, yet few firms have a well-planned document management strategy in place.
The right document management system can improve your firm’s efficiency, accuracy, and ultimately, profitability. But in order to achieve a good return on investment from any new document management system, you’ll need a solid workflow and process.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...
Where Does a Sale Take Place in Cyberspace?
1. Where Does a Sale Take Place in Cyberspace?
Staying on Top of the Changing Rules
2. Introduction
State sales and use tax laws have long been an area of ongoing complexity and
change, but emerging technologies have increased that complexity tenfold. It
wasn’t that long ago when terms like “cloud computing” sounded more like
science fiction. Today, they are well understood by most Americans. As more
technology migrates to the cloud and as Software as a Service (SaaS) becomes
a common means of software distribution, products are being digitized and
downloaded instead of purchased on-site at the store. States are hungry for
revenue, but don’t know quite how to proceed since their laws often define
taxable goods as tangible items. States are taking very different approaches to
taxing emerging technologies, making it increasingly difficult for companies to
move forward with confidence. If you are feeling lost in the transition, you are
not alone.
The purpose of this white paper is to provide an overview of the state sales and
use tax issues facing large and small companies today and to provide a road map
for companies to see their way through the complexity.
A Changing Landscape
State sales and use laws have always had
their unique quirks. Not long ago (it has
since changed), North Carolina’s tax code
defined “food” as any item that contained
flour and exempted those items from tax.
As a result, you could purchase a Snickers
bar and not pay state sales tax because
a Snickers®
bar contained flour. If you
wanted a Mars®
bar, however, you’d better
be prepared to pony up because Mars®
bars did not contain flour. So you had two
pieces of candy from the same supermarket
shelf being treated very differently due to a
technical definition.
Similar issues are arising with emerging
technology today. Take Microsoft®
Office,
for example. Just a few years ago, if you
wanted to purchase a copy of Microsoft®
Office, you would walk into a store like
Best Buy®
and pick up a DVD. That disc was
taxable because the disc itself was tangible.
Today, you can go to Microsoft.com
and subscribe to Microsoft®
Office 365.
You receive the same Office functionality
only the software is housed on Microsoft®
servers, not on your computer. The method
of delivery is what’s making one version
taxable and one not taxable, depending on
where you live.
Today, we are probably more likely to
download our music from iTunes®
instead
of purchasing CDs in a record store. Or we
could access a music streaming service like
Spotify®
that allows subscribers to play
music on any device for a subscription fee.
The change in the delivery of products and
services has meant changes to the ways
states tax these items.
3. Increased Regulatory
Complexity
Predictably, states are taking very
different approaches in how they treat
digital or cloud-based products, making it
exceedingly difficult for companies to stay
on top of the multitude of regulations. For
example, Pennsylvania, Texas and Utah
have started to provide guidance on the
taxability of SaaS products, while some
states such as Colorado and Virginia have
decided not to tax SaaS products, which
could encourage cloud service providers to
open offices and create jobs in their states.
Some states have begun moving forward on
a case-by-case basis, while others haven’t
even begun grappling with this thorny issue.
One thing is clear: as cloud computing
continues to evolve, and as more states seek
fresh revenue sources, we can anticipate a
great deal more action and change in this
space. The challenge is for companies to
stay on top of the evolving regulations.
Many states are starting to change their
definitions of a taxable product. In the
past, states would tax tangible items. If
it could be held and touched, it could be
taxed. Now we’re seeing states change
the wording of tax laws, introducing a
great deal of ambiguity by saying that
personal property is anything that can be
perceived by the senses of the purchaser.
In addition, they are changing the definition
of “situsing” rules. Put another way, they
are beginning to redefine where a sale is
sourced for tax purposes. For transactions
involving sales of digital content and cloud
services, the proper application of situsing
rules is largely dependent upon how these
product offerings are characterized in
a given state. The threshold issue is to
determine how the product or service is
characterized for sales and use tax purposes
(e.g., tangible personal property, service,
etc.). Once that determination is made,
each state’s situsing rules may be applied.
However, states have proven inconsistent
in characterizing the sale of emerging
technologies as tangible personal
property or services for sales and use
tax purposes. These types of state
inconsistencies are the rule, rather than
the exception. Nevertheless, once the
characterization of a product and its
taxability is determined, an understanding
of a state’s sourcing rules is essential.
Who Gets the Tax?
When a company with a cloud in one
state sells to a customer in another, which
state gets the tax? Is it the state where
the user buys the product? Or the state
where the server is located? The answer, as
you might have guessed, is “it depends.”
Some states are using the billing address
of who purchased the product. Others
have decided to source the tax to the
location of the server. Still others take a
multiple points of use approach. When
companies have multiple locations, things
tend to get complicated quickly. Questions
that need to be answered include:
ll Which jurisdiction gets the tax
when software is downloaded from
a server in one state and used by a
customer in another?
ll Where did the property change hands?
ll Where did the property originate from?
ll Who shifts the property to someone else?
ll Where is the address that gets the bill?
A Ray of Hope
On the bright side, there’s a growing
movement toward simplifying the state
sales and use tax code to create a common,
universal definition of how to tax these
emerging technology products. The
Streamlined Sales Tax Governing Board,
which consists of 24 states coming together
to create a uniform sales tax law, has
attempted to lead the charge in establishing
clear and predictable rules around situsing.
Unfortunately, it appears that these issues
will not be resolved in the near future.
Based on the recent introduction of federal
legislation intended to mandate collection
on remote sellers (the Marketplace Fairness
Act or MFA), the short-term efforts of the
Streamlined Sales Tax Governing Board will
be focused on the implementation issues
associated with federal legislation, rather
than on these more substantive issues.
That leaves businesses in a challenging
position, because they are the most at
risk of being audited. Unfortunately, the
burden is on companies to stay on top of
the murky state tax laws themselves, but
many organizations are simply not staffed
appropriately to do that effectively.