Taxability
Other than nexus, another important consideration for your sales tax compliance is knowing the taxability of your products and/or services. You want to accurately collect and remit sales and use taxes. Otherwise, you will have unhappy customers or even worse, have unreported taxable sales assessed in an audit.
Perhaps you just sell tangible property which is taxable everywhere. However, what you sell can impact the application of tax. For instance, clothing is generally taxable but is exempt in some states if the article costs more than a certain amount. Clothing is also exempt in some states during a sales tax holiday.
In addition to your primary product or service, ancillary services such as shipping, handling, installation, or training may also be taxable. It gets even more complex if you are selling digital goods or if your product is electronically delivered or remotely accessed. We will work with you to review all revenue streams to determine the product classification of what you are selling and the associated application of tax.