A recent CFO article warns of the nexus trap: “If tax officials find that a business has “nexus” in a state, the penalties and interest they charge can easily double the tax the company otherwise owes.”
What do new state tax nexus laws mean for businesses?
The article goes on to explain the importance of a businesses’ knowledge of their state tax nexus risks from outside marketing and sales fulfillment providers, especially in light of new state tax laws. These external providers can include advertising, delivery, sponsorship, endorsements, and other external activities.
Now more than ever companies need to be on top of tax, calculation, reporting, and remittance. Couple this need with other industry changes, including downsizing and outsourcing, and there’s never been a better time for a sales and use tax automation solution. For more information on how Vertex Inc. can help you define your nexus – and solve your sales tax needs – check out our solution.
When tax groups and their organizations begin to consider a new investment in tax automation (or integrating existing tax automation with a new ERP system or procurement platform), it is useful to assess their current tax automation approach. Learn the four sets of key considerations to identify important questions for project teams to address and respond to as a means of strengthening their implementation plan.