Multi-State Product & Service Taxability Services
We work with our clients to determine where and when they’ve created nexus. Then we analyze their various revenue streams to determine which of their products and services are subject to tax in each state. Then we analyze possible exemptions and our clients’ supporting documentation. Only then can we determine any retroactive exposure (and possible remediation) and a path forward to compliance.
As discussed on our page about Nexus, the most important thing in determining the state sales tax filing requirements (and possible retroactive exposure) is finding the start date for a company in a given state (i.e.; when either physical presence or economic nexus has been created). If nexus has been created, the next step is to determine whether the seller’s products or services sold to customers in that state are subject to taxation. And, of course, taxability varies state by state.
As a general rule, tangible personal property (“TPP”) – something that can be seen, touched, or perceived by the senses, is subject to tax, unless there is a statutory exemption. On the other hand, services are generally non-taxable, unless specifically enumerated in a state’s statutes. In between those parameters is where all the nuances are!
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Is your business selling TPP? What about software or SaaS (software as a service)? How do states define that? Are you selling to government entities, non-profits? Are you selling items for resale? If so, do you have proper documentation to support an exemption? If you have any (or all) of these questions, contact us!
Our Expertise in Product & Service Taxability
Expert Guidance on Nexus Establishment
Our team provides expert assistance in determining the start date for a company’s physical or economic nexus creation in each state, ensuring accurate identification of sales tax filing requirements and potential retroactive exposure.
Customized Taxability Analysis
We work closely with clients to analyze their revenue streams, identify taxable products/services in each state, explore possible exemptions, and review supporting documentation to determine retroactive exposure and devise a compliance path.
Specialized Knowledge on Service Taxability
We work closely with clients to analyze their revenue streams, identify taxable products/services in each state, explore possible exemptions, and review supporting documentation to determine retroactive exposure and devise a compliance path.
Clarity on Software Taxability
We offer insights on the tax treatment of software, including SaaS, helping clients navigate complexities such as how states define software, distinguish between tangible and intangible software, and interpret various tax rules for software sales.
Exemption Documentation Expertise
Our services include assisting clients in documenting exemptions effectively, providing guidance on documenting SaaS exemptions, general exemption documentation, typical exemption categories, and specific requirements across different states.
Learn more about areas of state tax compliance that may affect your SaaS company.
Want to Discuss Economic Nexus?
What Our Clients Say About Us
As a Tax Professional for a Fortune 500 company in the SF Bay Area, I’ve worked with Bill Loew’s team for over 10 years in the areas of Audit Defense, Reverse Audits and Tax Research. In addition to their technical expertise, the Miles Team is friendly, professional, and highly motivated to help clients achieve significant tax savings. Bill and the Miles Team continue to be a trusted and valued business partner that assist me in efficiently and effectively manage the growing complexities of multi-state sales/use tax compliance obligations.Tax Director
Sales tax isn’t an area of competency for most CPA’s. In talking with Monika and the Miles Consulting team, you can see their breadth of knowledge and experience in sales tax consulting. They are also quick to respond, are helpful, organized, and great at taking cumbersome compliance work off our plate.Corporate Controller, Technology Company
Our experience with the Miles team is that they engage in detailed research, close reading of the law and a savvy navigation of the gray areas where the law meets the business operations. This is often tricky and you have to be aware of risk mitigation, particularly in the SaaS industry, where things can be a little unclear with respect to sales tax. Tax Director, SaaS Company
Frequently Asked Questions About Product & Service Taxability
Sales tax nexus refers to the connection between a business and a state that triggers sales tax obligations. Understanding nexus is vital for determining tax compliance responsibilities and avoiding potential liabilities.
We provide expert guidance and analysis to help determine the start date of nexus creation for your business in various states, considering factors like physical presence or economic activity.
Our team conducts a comprehensive taxability analysis to identify which products and services are subject to taxation in each state, considering state-specific rules and exemptions.
We analyze the taxability of services based on state laws and regulations, providing insights into which states impose sales tax on specific services like data processing or information services.
5. Is software considered tangible personal property, and how is Software as a Service (SaaS) taxed?
We offer clarity on the tax treatment of software, including SaaS, considering factors such as delivery method, state tax laws, and the distinction between tangible and intangible software for accurate tax compliance.
Our team offers guidance on documenting exemptions with specific requirements varying by state, including blanket exemption certificates, resale certificates, and other necessary documentation for compliance.
We provide insights into typical exemptions such as sales to government entities, nonprofit organizations, sales for resale, medical equipment sales, and more, tailoring exemption documentation to meet state-specific criteria.
Our team offers guidance on documenting exemptions with specific requirements varying by state, including blanket exemption certificates, resale certificates, and other necessary documentation for compliance.
Yes, we provide support in preparing ruling requests, conducting customer outreach to reduce exposure, and assisting with voluntary disclosure agreements to address compliance issues effectively.
We conduct a detailed analysis of a company’s revenue streams to identify taxable products/services in each state, review possible exemptions, and evaluate supporting documentation to determine retroactive exposure accurately, enabling a path forward to compliance.
Our team continuously monitors and stays informed about changes in state tax laws and regulations, providing clients with up-to-date insights and guidance to navigate evolving compliance requirements effectively.
Yes, we offer comprehensive support in managing registrations, back-filings, and compliance strategies tailored to businesses with operations in multiple states, ensuring timely and accurate sales tax compliance.
By partnering with us, businesses can leverage our expertise, industry knowledge, and customized solutions to ensure accurate tax compliance, mitigate risks, and optimize their sales tax management process with confidence.
Yes, we offer post-analysis support and guidance to help clients maintain compliance, address any tax-related issues, and optimize their sales tax processes through continuous assistance and strategic recommendations.
We provide a thorough analysis of state-specific tax laws and regulations to determine the tax implications for businesses selling software, SaaS, and other technology-related services, ensuring accurate tax compliance across jurisdictions.
Our team specializes in handling complex sales tax issues, including determining the taxability of specific services or products in niche markets, providing tailored solutions to meet the unique tax compliance needs of our clients.
We guide clients through the documentation process, ensuring accurate and compliant record-keeping for exemptions, ruling requests, and other compliance-related activities to support their sales tax compliance efforts effectively.
Our team addresses variations in tax treatments for software and services across different states by conducting in-depth research, providing tailored guidance, and developing compliance strategies to ensure businesses adhere to state-specific tax laws effectively.
Yes, we assist businesses in identifying potential exemptions, analyzing documentation requirements, and documenting compliance for sales tax obligations when selling products and services in multiple states, ensuring accurate tax reporting.
We provide guidance and support in identifying and addressing retroactive exposure issues, analyzing possible remediation strategies, and helping businesses rectify compliance gaps to minimize potential liabilities effectively.
Clients benefit from our industry-specific knowledge, personalized solutions, and strategic guidance in navigating the complexities of sales tax compliance for different industries, products, and services, ensuring accurate tax management and regulatory adherence.
Yes, we provide a customized approach to sales tax compliance, tailoring solutions based on each client’s unique needs, operational dynamics, and industry-specific requirements to ensure effective tax management and regulatory compliance.
Our comprehensive approach, industry expertise, ongoing support, and tailored solutions set us apart in delivering sales tax compliance services and taxability analysis for businesses selling products and services nationally, ensuring efficient and accurate tax reporting.
Businesses can reach out to us through our website or contact us directly to schedule a consultation, where we can discuss their sales tax compliance needs, assess their requirements, and determine the best approach to achieve compliance.
By partnering with Miles Consulting Group, businesses can benefit from expert guidance, thorough taxability analysis, tailored compliance strategies, ongoing support, and industry knowledge to navigate complex tax issues, ensure accurate tax reporting, and optimize sales tax compliance for operations across multiple states. Our team is dedicated to providing personalized solutions and strategic guidance to help businesses achieve efficient, compliant, and effective sales tax management. Contact us today to explore how we can assist you in navigating the complexities of sales tax compliance and taxability analysis.
