Sales and Use Tax Compliance
Hello again,
In response to all the changes happening since the Supreme Court Wayfair decision, Passport Software is working to include capabilities in our accounting software to support the new sales and use tax collection obligations of “remote sellers.”
Capabilities
Our current sales and use tax capabilities are good, but were never designed for these new rules.
With the expanded requirements of Wayfair, many of you will need improved tools and we are in the process of creating them.
Passport Software will soon release a new PBS™ module, Multi-State Sales and Use Tax Management for PBS Version 12.06 that addresses many aspects of the new laws including:
• Monitoring your sales in each state versus the thresholds of each state
• Reporting when you need to start preparing to collect tax for a state
• Selecting how you want to handle each state (several options exist)
• Calculating sales and use tax several ways, including integration with online sales tax service
• Reporting to and paying the states on the proper schedule
• Tracking and managing reseller certificates and exemption certificates
Economic Nexus Determination
In the meantime, here are some steps your clients can take right away to look at their economic nexus determination (usually last year sales totals and the state threshold) to see the states where they will need to comply.
1. One of the first questions a business owner now needs to ask is “What were my total sales by state for 2018?”
2. “How many invoices (transactions) did we do in 2018 by state? Either of these could trigger economic nexus.
3. You can also start to set up GL Accounts for each taxing authority and the tax codes to handle their transaction taxation.
4. And maybe most important, if they sell to resellers or to not-for-profit exempt organizations, focus on cleaning up any lax areas of resale exemption certificate management. Make sure they have proper exemption and resale certificates, or other state forms as required by each state where their customers are located.
Please call 800-969-7900, or Contact Us – We are here to help.