12 Tips Every Business Should Know About Sales Tax Compliance

Sales tax has never been more complicated. As state budget deficits continue to soar, states are becoming more creative with the products and services that they tax, and hiring more auditors to collect the tax. With new laws, rates, and rules always in flux, it makes it nearly impossible for businesses to ensure compliance. To help businesses reduce their risk of an audit and stay ahead of the ever-shifting sales tax landscape, Avalara sales tax experts have put together 12 sales tax tips that your business can implement before 2013.

Here is a preview of a tip provided by Avalara…

Sales Tax Tip #10: Zip codes and jurisdictions: Verify your jurisdictions using exact location, not ZIP code
One critical component of determining the correct sales tax rate is ensuring you know where you have liability to collect sales tax. ZIP codes are a web of streets and postal routes that can be divided and changed as areas become more densely populated. Using ZIP codes to determine sales tax rates may prove accurate some of the time; however, using a rate from the wrong jurisdiction or leaving out a special district tax may lead to huge hassles, such as audits, penalties and return reconciliation...

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