Sales and use tax compliance is a predominantly form over substance discipline where the documentary evidence of a transaction guides the proper application of tax. Evaluation and retention of invoices and contracts is essential for ongoing, accurate compliance. The hidden dangers lurking in even the most seemingly innocuous of invoices can cost companies thousands of dollars under audit. Examination of features such as shipping terms, defined shipping points, the nature and description of services performed, bundled pricing, nexus implications for proper tax application, statements of tax and the rates of tax charged is essential. Of equal importance is ensuring that the form of the transaction (i.e. the invoice) accurately reflects the substance of the transaction, because it is that form which governs the application of sales and use tax.
By viewing the webinar replay, ‘Sales and Use Tax: The Hidden Danger in Invoices’ you will not only gain a greater understanding of the pitfalls in sales and use tax compliance, but you will obtain the tools to put this knowledge to work in minimizing your company’s sales and use tax exposure.
- Nexus implications and their effect on invoicing
- Lump-sum vs. Bundled invoicing
- Solutions for automation and manual matrices
- The economic presence and impact on invoicing
Editor’s Note: This content was orginally published on July 31, 2013. It has been ungated and republished due to popular demand.