State and local governments in the U.S. are relying increasingly on transaction-based taxes rather than income-based taxes to fill their coffers, as they are easy to implement and provide reliable revenue, according to a recent report from tax technology company Vertex.
“Businesses may be affected by not being able to import certain products and are shifting to regional suppliers, which could change the obligation to collect and remit sales taxes or VAT in new jurisdictions,” said Vertex chief tax officer and vice president of tax content Michael Bernard in a statement. “Companies are also establishing hybrid working policies to attract and retain staff, which can also change the nexus footprint.”