Sales tax reconciliation is an accounting process that assesses whether the sales tax reported and paid to the revenue departments matches the sales tax collected from customers during sales.
Navigating tax laws in the United States can feel like making your way through a labyrinth at times. With separate income tax and sales tax regulations that contradict neighboring state’s laws, feeling lost when it comes to tax compliance is an understandable response.
The importance of complying with the sales tax laws in states where you have a nexus is well documented. But what happens when that nexus expires and you no longer meet the criteria that created it in the first place?
Boldly going where no business has gone before! With the borderless possibilities of eCommerce and the digital marketplace, those words ring true for countless businesses whose growth potential would have been a fraction of what it is today without the internet.
Sales tax reporting, in a nutshell, is the process of creating and maintaining sales tax reports that provide a summarized (but still intricately detailed) overview of the revenue and sales tax collected by a company.
Thanks to the constant evolution of the digital marketplace, smaller businesses can realize sustainable growth and marketplace facilitator rules have become a pivotal force in the sustainability of that growth.