Tag Archive for nexus

It’s All Greek To Me!- Multistate Tax & Foreign Companies

I just returned from an amazing vacation – a cruise of the Mediterranean. We started in Athens, Greece; spent just a couple days there enjoying the history, and then boarded our ship.  The cruise took us to the Greek isles of Santorini and Crete, and then we sailed to Italy, the beautiful St. Tropez, France, and finally Barcelona, Spain. We finished our vacation by sampling many, many tapas and wines in Barcelona. About midway through our vacation, I found myself wondering – how could I do U.S. multistate tax consulting somewhere in Europe?  I’m still working on that angle, and will certainly keep you posted. Read More

Written by | Posted in International

3 Important Tax Facts For Medical Device Companies

Monika Miles

If you’ve been following these series about multi-state tax facts, you know we’ve already covered software and SaaS companies. What about medical device companies?

Because the term “medical device” covers a wide range of instruments, machines, accessories or other tools that can be used both externally (such as tongue depressors) or internally (like pacemakers), there are a lot of multi-state tax questions that arise in this industry.

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Written by | Posted in State Tax

Multistate Tax: The Top 3 State Tax Issues For 2017

Monika Miles

Happy New Year!

I always like the fresh feeling of a New Year – a clean desk, a new calendar, and a relaxed and grateful frame of mind from coming off of the holidays. I’m particularly excited about 2017 because it’s a year of special milestones and anniversaries for me – both personally and professionally, and I’m a big believer in celebrating those special occasions. I’m not sure exactly what the year will bring, but I have big expectations for it.

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Written by | Posted in State Tax

Nexus News: The Latest From Ohio And South Carolina

Monika Miles

As lawmakers continue to debate how to make online sales tax feasible for the whole country, the issue of nexus continues to reign supreme for states attempting to increase their revenue from internet retailers. The latest in nexus news comes out of Ohio and South Carolina, two states that recently released details about how nexus is defined in their states.

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Written by | Posted in Sales/Use Tax • Small Business • State Tax

A Spotlight on Movie Production Tax Incentives

Introduction

Whether you’re a publicly held movie studio conglomerate producing and distributing substantial numbers of films annually commanding significant shares of box office revenues worldwide or an independent filmmaker, movie production tax incentives should certainly be considered and incorporated into the tax planning process to properly tax effect the cost of filmmaking.

Synopsis of Movie Production Tax Incentives

Movie Production Tax Incentives (hereinafter “MPIs”) are tax benefits offered on a state-by-state basis throughout the United States to entice, as applicable, in-state qualified phases of Read More

Written by | Posted in Specialty Tax Incentives

New National Nexus, The U.S. Congressional Marketplace Fairness Act

New And Upcoming National Nexus, The U.S. Congressional Marketplace Fairness Act
Dan Thompson, Thompson Tax, Silicon Valley, CA
Learn what Daniel Thompson, President of Thompson Tax And Associates will be discussing at the upcoming TaxConnections Internet Tax Summit.  Watch and listen to his brief video that will lead up to his full presentation on the New and Upcoming National Nexus.  Daniel’s Tax Industry Expertise is in Multi-State and Local Sales & Use Tax Consulting.

 

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Written by | Posted in Nexus

One Logical Way To Get Vendors To Collect Use Tax

For decades, states have sought ways to get remote (non-present) vendors to collect sales/use tax when they sell to customers in the state. States have been pushing Congress to provide assistance and many have enacted laws to broaden their nexus reach.

I’ve been researching, writing and testifying on this topic for many years. One of my suggestions has been to only let the state and its agencies purchase from vendors that are registered with the state to collect sales tax. That is, if a vendor wants to have the state or any of its agencies be a customer, it must register to collect sales/use tax.

Before California enacted its “Amazon law” in 2011, I always thought it was odd that my Read More

Written by | Posted in Sales/Use Tax

Online Sales And Physical Presence Nexus

All of the energy and focus on the Marketplace Fairness Act (MFA) has lulled many online sellers into a false belief that they do not need to collect retail sales tax on their online sales until Congress takes action on the MFA. What many online sellers forget is that states can still require online sellers to collect retail sales tax if the online sellers have physical presence nexus in a state. Further, this physical presence nexus need not be necessarily connected with their online sales.

Recently, I have worked with a number of companies facing significant tax exposure for uncollected retail sales tax on their online sales. Although these sales are generated exclusively from customers developed over the Internet, these companies failed to recognize that physical presence of their employees or representatives pursuing wholesale sales Read More

Written by | Posted in Sales/Use Tax • State And Local Tax (SALT)

North Carolina Benefits from Amazon Sales Tax Collection

As many people know, Amazon has been clashing with many states whether it should be required to charge, collect, and remit sales tax. Many states have taken the position that Amazon’s affiliates and distribution centers created the dreaded “nexus.” If an online retailer (or any company) has so-called “nexus” it is required to charge, collect, and remit tax in that state. With millions of dollars at stake, Amazon threatened to pull its affiliate programs in those states which, in turn, would cut tens of thousands of jobs. Fearful of huge job cuts in a struggling economy, many states allowed Amazon a grace period, permitting the company to continue its program and not collect sales tax for x number of years in the future. Once the grace period expired, then Amazon would have to charge, collect, and remit tax. In return, the state would keep its jobs as well as get more tax Read More

Written by | Posted in Sales/Use Tax • State And Local Tax (SALT)

Delivery to Washington Customers in Company Owned Trucks Creates Nexus

Creating a not so Happy New Year for out-of-state taxpayers, the Court of Appeals for Division II found that Space Age Fuels, Inc. (Space Age) had nexus for Washington B&O tax based on the delivery of fuels to Washington customers in company owned trucks. Space Age Fuels, Inc. v. Washington, Docket No. 44195-1, Court of Appeals Division II (12/31/2013).

Space Age, a corporation maintaining its principal place of business in Oregon, operates a wholesale and retail fuel business. While all of its fuel stations are located in Oregon, Space Age had about 40 wholesale customers in Washington. The Washington customers would place an order via telephone, fax or email. Space Age quoted a price for fuel and a separate price for delivery of the fuel, which varied according to distance. Read More

Written by | Posted in Sales/Use Tax • State And Local Tax (SALT)

The OECD v. Tax Havens: Part IV – The Digital Economy

The current tax rules underpinning practically every tax code around the globe are derived from a “bricks and mortar” or manufacturing based economy. What this means is the underlying concepts were developed when all world economies were based on building physical products that were bought and sold (think industrial revolution). For example, the tax treaty phrase “permanent establishment” was actually developed by League of Nation’s negotiators during their preliminary discussions to develop a working tax treaty framework. Compare this to today’s digital economy where “products” are actually multiple lines of computer code that exist in cyber-space (or a trademark or patented item) or where a “store front” (the old “permanent establishment”) is in fact a web site located halfway around the globe on a server in a tax haven. This mismatch between the underlying concepts of the old Read More

Written by | Posted in OECD

OECD Model Treaty Post Series – Background

An Overview of the OECD Tax Treaty: Some Background

Assume that company XYZ — which is domiciled in the United States — wants to sell goods to Germany. While this looks like a great idea on paper it may wind up being counter-productive. Why? Because the transaction may be subject to double taxation. The US taxes income of its residents on a world wide basis — meaning that wherever in the world you earn money, if you are a US citizen you have to pay US tax on the earnings. In addition, Germany will also tax the transaction because it occurs within its geographic borders. So, if the US company sells a good in Germany, it will pay both a US tax and a German tax on the transaction, making this a possibly money losing proposition. Read More

Written by | Posted in Federal • OECD
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