As your clients' businesses evolve to serve our modern business world, your approach to sales tax should too. More than ever, small to medium-sized business clients need expert help navigating and planning for their sales and use tax obligations.
Economic Nexus Law in Your SUT Advisory Practice
Your exposed clients
need expert advice.
There are more
sales tax considerations
than ever before.
In addition to highly complex laws, your clients' businesses have rapidly become more advanced. With a few taps on a screen, clients can hire remote workers, pivot to add new product and service lines, sell direct-to-consumer, or extend their reach with omnichannel e-commerce platforms. Many exciting changes your clients implement may have surprising tax implications.
Maximize your time
Spend less time waiting for information, crunching numbers in spreadsheets, and searching for sales tax answers to keep your clients on track. LumaTax can help you streamline workflows and collaborate with clients in a way that is effective and scalable.
How SUT Advisory Gets Done
The old way
LumaTax Enables a Proactive Approach to SUT Advisory Services
The South Dakota v. Wayfair ruling set the stage for states to tax remote sales based on economic nexus.
Now, having a physical presence in a state is no longer the only qualifier for collecting sales tax. Clients who previously had few or no requirements to register and collect sales tax must comply with complex multi-jurisdictional laws.
There are two approaches accounting firms have taken to Wayfair’s monumental impact:
A reactive approach is when accountants wait for a client to come to them for guidance, often after receiving notice from a state agency. Usually, these are one-time projects that involve scrambling to collect data and perform a study. There are missed opportunities for cost-saving measures, such as Voluntary Disclosure Agreements, and are typically not positioned for recurring services to provide ongoing guidance and support.
In contrast, there's a proactive approach, where you establish an automated workflow to capture relevant, timely, and complete data to measure the potential exposure of all your at-risk clients. You monitor client nexus and provide additional advisory services as needed. By doing so, you can get ahead of tax liabilities, help clients avoid or reduce penalties and interest, and minimize their audit risk. Your firm can also can help clients plan for changes that will have nexus implications, such as hiring remote workers or adding sales channels. This approach is profitable for firms and provides continuous value to clients.