The Changing Landscape for Sales and Use Tax Strategies
Key Considerations for Manufacturers
Key Considerations for Manufacturers
A landmark 2018 Supreme Court decision, South Dakota v. Wayfair, Inc., opened up more companies to the responsibility of paying sales tax to states, allowing states to enact economic nexus laws, even when organizations don’t have a physical presence in the state. In addition, manufacturers are investing in ecommerce as part of a new market strategy to improve customer experience, which complicates sales and use tax collections. Online sales have risen rapidly, resulting in a significantly greater need to track, collect, remit and defend sales tax payments for a myriad of possible jurisdictions. In cases where manufacturers don’t need to collect sales tax, they should be collecting and managing exemptions from customers to be able to defend their decision.
“We may not have to collect sales tax, but that doesn’t mean we don’t have to file everywhere. I don’t think people have an appreciation for the amount of work that goes into managing sales and use taxes. It’s a big challenge for us.”
– VP Tax, Transportation Equipment Manufacturer
Manufacturers Alliance, in partnership with Sovos, conducted survey research and executive interviews to gain a greater understanding of trends in sales and use tax compliance, as well as the strategies that manufacturers are using to reduce risk and make filing and compliance more efficient.
Five findings reflect key considerations for leaders making sales and use tax-related decisions.
Download the full report to see how manufacturing companies are managing sales and use tax compliance in their organizations. From compliance trends to strategies for increasing efficiency and reducing risk, the data collected in this report can help guide organizations to an optimal sales and use tax strategy.