Implementing a marketplace is a major change for any company, but especially for the individuals tasked with managing it day-to-day. Below are five key changes tax professionals can expect to face now that they’ve taken on this new responsibility.
Online marketplaces bring a whole host of new job duties for tax professionals. For starters, it has the potential to require you to manage millions of new products as well as manage the relationships with the companies (sellers) that sell those products. In many cases it will be unclear who – you or the seller – should collect the tax for the marketplace sales. Each state has strict requirements which are also not always well defined. Plus, you will be required to submit two invoices for international sales. With all of these nuances, tax professionals should consider automating what they can with a tax engine.