DOCSLIB.ORG

Sales Tax & VAT Newsletter

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Sales Tax & VAT Newsletter Sales Tax & VAT Newsletter A Quarterly Publication of ADP’s Tax & Government Affairs Division ISSUE 1/VOLUME 1 MAY 2011 ADP Extends its Sales In this issue: and Use Tax Outsourced • Welcome to our first issue! Returns Solution Our enhanced Outsourced Returns • Affiliate Nexus: The Next Front in the State Battle Solution now interfaces with any to Tax Remote Sales tax collection system and reduces By Charles Collins the burden associated with time- • Transaction Tax News from United States consuming tax filing processes. This powerful solution helps reduce • All EU-VATs Are Not the Same, and That’s OK operating risk and compliance By Richard Ainsworth costs, while freeing up resources • Transaction Tax News from Around the World for more mission critical tasks. • Sales Tax Holidays in the U.S. and Canada For additional details, please By Joan Howard see our press release: http://www.adp.com/media/press- • Tax Oddities Around the World releases/2011-news-releases/adp- extends-its-sales-and-use-tax-outso urced-returns-solution.aspx. Welcome to our first issue! Welcome to the first edition of the ADP Sales, Use and VAT Tax Solutions newsletter. In each issue, we will provide in-depth articles discussing topical issues in transaction tax, both in the US and globally. In addition, we will provide short summaries of some of the most important legal and regulatory changes in tax laws that have taken place over the past quarter. Our goal is to provide immediately useful information to transaction tax professionals while highlighting the interesting, challenging and sometimes comical application of these taxes. We hope you enjoy the newsletter. Please share it with all your colleagues! Matthew Walsh Senior Director of Tax and Operations ADP Sales, Use and VAT Solutions ADP SALES TAX & VAT NEWSLETTER 2 Affiliate Nexus: The Next Front in the State Battle to Tax Remote Sales States’ efforts to increase compliance with their use tax laws are not new. States have historically educated, audited and legislated to collect more use tax. While states have increased collection of use tax, the growth of internet sales, and the continued inability of states to require remote sellers to collect the tax without a physical presence, has pushed the revenue loss from individual purchasers to an estimated $18B for 2012.* During the past twelve months, states have refocused their legislative efforts to make it more difficult for remote sellers to ship products into their states without collecting tax. This increased focus should not be unexpected, as many state governments continue to deal with budget shortfalls. Simultaneously, instate sellers complain of being at a competitive disadvantage to remote sellers who are not collecting the tax. Charles Collins is Vice President of Government Legislation expanding nexus requirements has been enacted in New York, North Carolina and Rhode Island. These laws make the use of an instate affiliate Affairs at ADP. Prior to joining directing sales to an out of state remote sellers’ website a nexus, creating ADP, he spent 32 years activity for the out of state seller. This affiliate nexus is often referred to as with the North Carolina “click-through-nexus.” Other states have enacted special reporting or notice Department of Revenue. requirements on remote sellers, requiring them to inform the purchaser of He was Co-Chair of the their responsibility to self report the tax, and, in some states, a requirement on Streamlined Sales Tax the remote seller to provide the state a customer list of purchases shipped into Projects (SSTP) for two and a their state. half years, coordinated the During this legislative session, affiliate nexus, notice or reporting legislation is SSTP pilot project, and was very popular. Legislation has been introduced in sixteen states and has already also a delegate to the SST been enacted in Illinois and South Dakota. Remote sellers have contested the Implementing States. affiliate nexus laws and suits are pending in some states. Remote sellers have also severed ties with their instate affiliates in some states while they seek a judicial resolution. According to published reports, states and main street retailers are continuing to push federal legislation to require remote sellers without a physical presence to During the past twelve collect sales and use tax. Although a bill has not been introduced, it is expected at any time. months, states appear to Internet sellers and other remote sellers should continue to monitor developments have refocused their efforts in the affiliate nexus and reporting areas at the state and federal level. Reserves legislatively to make it more may be necessary if a law change or court decision alters the current law. Failure to monitor the situation closely could put businesses in a non-compliant position. difficult for remote sellers to ship products into states without collecting tax. * State and Local Government Sales Tax Revenue Losses From Electronic Commerce by Donald Bruce, William Fox & LeAnn Luna, University of Tennessee, April 2009 ADP SALES TAX & VAT NEWSLETTER 3 Transaction Tax News from the United States ALABAMA GEORGIA With a complex scheme of special rates applicable The state of Georgia became an associate to general rentals, linen rentals, motor vehicle member of Streamlined Sales Tax (SST) on rentals, manufacturing transaction, and agricultural January 1, 2011. As part of its SST legislation, sales, local rate changes in Alabama are generally Georgia implemented a number of law changes. far from newsworthy. However, a rate change in Most notably, the special local rates on food that Rainsville, AL (approximate population 4,500) applied in DeKalb, Muscogee, Rockdale, Taliaferro effective April 1, 2011 caught our attention. In and Webster Counties no longer apply. Food is implementing a new use tax rate, Rainsville decided now exempt at the state level and taxable at to make their agricultural and manufacturing use standard local rates. tax rates higher than the applicable sales tax rates , presenting a rather obvious constitutional concern. KANSAS Kansas was one of a number of states that COLORADO initially changed their local sourcing rules to In Colorado, the rules relating to the taxability of become compliant with the then existing software have been adjusted repeatedly over the Streamlined Sales Tax requirement of destination last few years. Current proposed legislation would sourcing. However, based upon a change in the reinstate, effective July 1, 2012 the significant SSTP requirements, Kansas is now debating a software exemption that was rescinded on May 1, legislative measure that would allow vendors 2010 in response to a server budget shortfall. to choose their sourcing methodology. CONNECTICUT LOUISIANA The state’s legislature debated and the governor The Louisiana Department of Revenue temporarily signed into law bill SB 1239 that approved an suspended the effectiveness of two important overhaul reform of the states tax system. Among Policy Statements pertaining to the taxability of the changes approved are: the elimination of digital products and certain pay-per-view and multiple sales tax exemptions for goods and on-demand video services. The absence of services; an increase of the state sales tax rate these rules has created significant uncertainty to 6.35%; an increase of the hotel tax to 15%; the surrounding the taxability of these items. enactment and/or increase of excise taxes However, Louisiana has established a Working applicable to boats, clothing, jewelry, motor Group specifically tasked with bringing some vehicles and others, as well the requirement to clarity to this area. certain remote sellers with no physical presence in the state to collect the state sales tax. Other MASSACHUSETTS tax changes include the modification of personal As a result of a voter initiative, Massachusetts and corporate income tax for the state. The has repealed its recently enacted sales tax on majority of sales and excise taxes change alcoholic beverages. become effective July 1 st , 2011. ADP SALES TAX & VAT NEWSLETTER 4 MISSISSIPPI UTAH As it stands today, Tupelo is the only locality in Mississippi The Utah House has approved HB 35. If passed by the that imposes a sales tax. However, recently enacted SB senate and signed into law, the bill would significantly 2839 authorizes the city ofJackson to enact a 1% municipal change the taxability of products transferred electronically. sales tax if they so approve in a local election. VERMONT NEVADA There are bills pending that would reduce the state’s Aside from considering an expansion of their sales tax to sales tax rate from 6% to 4.5%, and extend that cover additional services, Nevada is also evaluating a tax to apply to candy and to a substantial number bill that would make water subject to tax. of services. NEW YORK WEST VIRGINIA Effective April 1, 2011 the State of New York enacted an The state legislature approved a reduction to the tax rate exemption for the sale of clothing priced at $55 or less. applicable to food for home consumption from 3% to 2% This threshold applies to both the state level tax and the effective January 1, 2012. MCTD (Metropolitan Commuter Transportation District) tax. This replaces, at least temporarily, the $110 exemption OTHER NEWS: that was eliminated last year. Interestingly, the $55 Affiliate Nexus Laws: States considering legislation threshold applies to the MCTD tax in all counties that aimed at requiring on-line retailers to collect and impose the district tax. Under the old rules, the threshold remit tax include: Arizona, Arkansas, California, only applied to the MCTD in those counties that adopted Connecticut, Minnesota, New Mexico, Rhode Island, a threshold similar to the state. Tennessee and Vermont. PUERTO RICO Streamlined Sales Tax Agreement: States considering legislation enabling membership into the SST agreement Puerto Rico has implemented a lottery system include: Florida, Hawaii, Massachusetts and Missouri.
Load more

Recommended publications
  • Tax Heavens: Methods and Tactics for Corporate Profit Shifting
    Tax Heavens: Methods and Tactics for Corporate Profit Shifting By Mark Holtzblatt, Eva K. Jermakowicz and Barry J. Epstein MARK HOLTZBLATT, Ph.D., CPA, is an Associate Professor of Accounting at Cleveland State University in the Monte Ahuja College of Business, teaching In- ternational Accounting and Taxation at the graduate and undergraduate levels. axes paid to governments are among the most significant costs incurred by businesses and individuals. Tax planning evaluates various tax strategies in Torder to determine how to conduct business (and personal transactions) in ways that will reduce or eliminate taxes paid to various governments, with the objective, in the case of multinational corporations, of minimizing the aggregate of taxes paid worldwide. Well-managed entities appropriately attempt to minimize the taxes they pay while making sure they are in full compliance with applicable tax laws. This process—the legitimate lessening of income tax expense—is often EVA K. JERMAKOWICZ, Ph.D., CPA, is a referred to as tax avoidance, thus distinguishing it from tax evasion, which is illegal. Professor of Accounting and Chair of the Although to some listeners’ ears the term tax avoidance may sound pejorative, Accounting Department at Tennessee the practice is fully consistent with the valid, even paramount, goal of financial State University. management, which is to maximize returns to businesses’ ownership interests. Indeed, to do otherwise would represent nonfeasance in office by corporate managers and board members. Multinational corporations make several important decisions in which taxation is a very important factor, such as where to locate a foreign operation, what legal form the operations should assume and how the operations are to be financed.
    [Show full text]
  • US-Steuerreform: Chancen Und Risiken: Wer Gewinnt – Wer Verliert?
    ZUR DISKUSSION GESTELLT US-Steuerreform: Chancen und Risiken: Wer gewinnt – wer verliert? Die Steuerreform von US-Präsident Donald Trump sieht deutliche Steuersenkungen für Unternehmen und bescheidene Entlastungen für Privatpersonen vor. Vor allem Bezieher hoher Einkommen werden von der Reform profitieren. Zudem dürften die Staatsschulden nach vorläufigen Berechnungen über das kommende Jahrzehnt um mindestens eine Bil- lion Dollar anwachsen. Die Steuerreform wird aber auch voraussichtlich die Konjunktur in den USA anschieben, und sie wird den USA durch die Senkung der Unternehmensteuer- sätze einen massiven Wettbewerbsvorteil bescheren. Wie sollten die europäischen Länder reagieren? wirkungen auf effektive Unternehmensteuerbelas­- Christoph Spengel*, Marcel Olbert** und tungen und die damit verbundenen Konsequen- Kathrin Stutzenberger*** zen, mögliche Folgen für die Entwicklung ausländi- scher Direktinvestitionen sowie auf das Verhältnis US-Steuerreform 2018 – der Reform zu aktuellen steuerpolitischen Entwick- Implikationen und lungen auf EU-Ebene eingegangen (vgl. Spengel et al. 2018). Konsequenzen für Europa1 AUSWIRKUNGEN DER US-STEUERREFORM AUF DIE Christoph Spengel Am 22. Dezember 2017 verabschiedete US-Präsident EFFEKTIVE UNTERNEHMENSTEUERBELASTUNG Donald Trump mit Unterzeichnung des »Tax Cuts and Jobs Act« die größte Reform des US-Steuersystems seit Die Konsequenzen der US­Steuerreform für die effek- 1986. Diese sieht mit Wirkung ab dem 1. Januar 2018 auf tive Unternehmensteuerbelastung im Verhältnis zu Unternehmensebene neben einer
    [Show full text]
  • The Relationship Between MNE Tax Haven Use and FDI Into Developing Economies Characterized by Capital Flight
    1 The relationship between MNE tax haven use and FDI into developing economies characterized by capital flight By Ali Ahmed, Chris Jones and Yama Temouri* The use of tax havens by multinationals is a pervasive activity in international business. However, we know little about the complementary relationship between tax haven use and foreign direct investment (FDI) in the developing world. Drawing on internalization theory, we develop a conceptual framework that explores this relationship and allows us to contribute to the literature on the determinants of tax haven use by developed-country multinationals. Using a large, firm-level data set, we test the model and find a strong positive association between tax haven use and FDI into countries characterized by low economic development and extreme levels of capital flight. This paper contributes to the literature by adding an important dimension to our understanding of the motives for which MNEs invest in tax havens and has important policy implications at both the domestic and the international level. Keywords: capital flight, economic development, institutions, tax havens, wealth extraction 1. Introduction Multinational enterprises (MNEs) from the developed world own different types of subsidiaries in increasingly complex networks across the globe. Some of the foreign host locations are characterized by light-touch regulation and secrecy, as well as low tax rates on financial capital. These so-called tax havens have received widespread media attention in recent years. In this paper, we explore the relationship between tax haven use and foreign direct investment (FDI) in developing countries, which are often characterized by weak institutions, market imperfections and a propensity for significant capital flight.
    [Show full text]
  • September 15, 2020 What's in and What's out of the Final 2020 Tax
    September 15, 2020 What’s In and What’s Out of the Final 2020 Tax Package The 2020 tax package (HB 7097) was amended many times as it moved through the process. At first it grew, topping $230 million in tax savings at one point. Then, citing a need to keep more money in reserves for COVID-19 response, it started getting smaller. The total of the final tax package is $47.4 million, $10.8 million of which is local. All of the savings comes from two sales tax holidays, so the tax cuts are one-time. This reduces the tax package's fiscal hit to the state to $36.6 million in the upcoming budget year, with no recurring impact. The original tax package, developed in the House Ways and Means Committee, contained a mix of tax cuts and tax The Evolving Tax Package administration changes. Most of the cuts were small. The Version Tax Savings two largest tax cuts in the bill were both Florida TaxWatch House Ways & Means $167.2 priorities--a reduction in the communication services tax House Appropriations $193.4 (CST) of 0.5 percent and a reduction in the business rent tax Passed by House $198.4 (BRT) from 5.5 percent to 5.4 percent. The original bill Senate Appropriations $233.7 Senate 2nd Reading $107.1 would have reduced state and local taxes by $162.7 million Final Bill $47.4 (the sum of the one-time cuts and the recurring cuts1). More cuts were added in House the Appropriations Committee, pushing the total to $193.4 million.
    [Show full text]
  • International Cooperation and the 2017 Tax Act Susan C
    THE YALE LAW JOURNAL FORUM O CTOBER 25, 2018 International Cooperation and the 2017 Tax Act Susan C. Morse abstract. There is a silver lining for the corporate income tax in the Tax Cuts and Jobs Act of 2017. This is because the Act’s international provisions contain not only competitive but also cooperative elements. The Act adopts a lower, dual-rate structure that pursues a competitiveness strategy and taxes regular corporate income at 21% and foreign-derived intangible income at 13.125%. But the Act also supports the continued existence of the corporate income tax globally, thus favoring cooperation among members of the Organisation for Economic Cooperation and Development (OECD). Its cooperative provisions feature the minimum tax on global intangible low-taxed income, or GILTI, earned by non-U.S. subsidiaries. Another cooperative provision is the base erosion and anti-abuse tax, or BEAT. The impact of the Act on global corporate income tax policy will depend on how the U.S. implements the law and on how other nations respond to it. introduction In 2017, House Speaker Paul Ryan, Representative Kevin Brady, and Senator Mitch McConnell accomplished something that many others, including former President Barack Obama, had long aimed to achieve. They lowered the federal corporate tax rate so that the U.S. rate now falls within the same range of rates used in most of the rest of the world. The Tax Cuts and Jobs Act of 2017 (TCJA) has attracted just criticism for its deficit financing, for its abysmal legislative craftsmanship, and for its sometimes-misguided policy objectives.1 But Con- gress deserves credit for the TCJA’s international corporate tax provisions that 1.
    [Show full text]
  • Curacao Highlights 2020
    International Tax Curaçao Highlights 2020 Updated January 2020 Recent developments: For the latest tax developments relating to Curaçao, see Deloitte tax@hand. Investment basics: Currency – Netherlands Antilles Guilder (ANG) Foreign exchange control – A 1% license fee will be calculated as a percentage of the gross outflow of money on transfers from residents to nonresidents, and on foreign currency cash transactions. Holding companies may obtain an exemption from the fee. Accounting principles/financial statements – IAS/IFRS applies. Financial statements must be prepared annually. Principal business entities – These are the public and private company (NV and BV), general partnership, (private) foundation, Curaçao trust, limited partnership, and branch of a foreign corporation. Corporate taxation: Rates Corporate income tax rate 22%/3%/0% Branch tax rate 22%/3%/0% Capital gains tax rate 22%/3%/0% Residence – A corporation is resident if it is incorporated under the laws of Curaçao or managed and controlled in Curaçao. Basis – In principle, residents are taxed on worldwide income. Exemptions may apply for profits derived by permanent establishments located abroad. In addition, as from 1 July 2018, foreign-source income is excluded from the profit tax base (although there is an exception for certain services, including insurance and reinsurance activities; trust activities; the services of notaries, lawyers, public accountants and tax consultants; related services; income derived from the exploitation of intellectual property (IP); and shipping activities). Page 1 of 7 Curaçao Highlights 2020 Nonresidents are taxed only on Curaçao-source income. Foreign-source income derived by residents that is not excluded from the profit tax base is subject to corporation tax in the same way as Curaçao-source income.
    [Show full text]
  • Is Paying Taxes Habit Forming? Evidence from Uruguay
    Is Paying Taxes Habit Forming? Evidence from Uruguay Thad Dunning,∗ Felipe Monestiery Rafael Pineiro,˜ z Fernando Rosenblatt,x and Guadalupe Tun˜on´ { This draft: October 16, 2016 Prepared for presentation at the Comparative Politics Colloquium, University of California, Berkeley, October 20, 2016. We are grateful to Lihuen Nocetto for research assistance and to the J-PAL Governance Initiative for generous funding. We received helpful comments on this project from participants at EGAP meetings at Columbia University and the Universidad Diego Portales (Chile), the Political Geography Conference at Harvard, and seminars at Emory, Indiana University Bloomington, McGill, Princeton, Stanford, UCLA, University of Pennsylvania, University of Wisconsin-Madison, and Yale. The pre-analysis plan for this project was registered with EGAP (www.e-gap.org/design-registrations) as well as the American Economic Association (www.socialscienceregistry.org) in July 2014. The study was approved by the Office for the Protection of Human Subjects at the University of California, Berkeley (Protocol ID 2014-04-6286). ∗University of California, Berkeley. yUniversidad de la Republica,´ Montevideo, Uruguay zUniversidad Catolica,´ Montevideo, Uruguay xUniversidad Diego Portales, Santiago, Chile {University of California, Berkeley and University of Pennsylvania. 1 Abstract Interactions between citizens and their states often involve routinized, repeated behaviors—and repetition may itself breed habits of citizenship that exert a causal influence on behavior. This implies the possibility of virtuous or vicious cycles in civic participation, as well as broader development outcomes. Yet, it is usually difficult to separate habit from confounding explanations for repeated behaviors. We study a policy in Montevideo, Uruguay that randomly assigns tax holidays, or year-long interruptions of payments, to punctual taxpayers; the program is designed both to reward and induce tax compliance, a critical aspect of citizen-state interaction and a key facet of state capacity.
    [Show full text]
  • Tech Untaxed: Tax Avoidance in Silicon Valley, and How America's Richest Company Pays a Lower Tax Rate Than You Do
    2012 Tech Untaxed: Tax Avoidance in Silicon Valley, and How America’s Richest Company Pays a Lower Tax Rate than You Do SAMUEL S. KANG and TUAN NGO I The Greenlining Institute Tech Untaxed: Tax Avoidance in Silicon Valley, and How America’s Richest Company Pays a Lower Tax Rate than You Do SAMUEL S. KANG and TUAN NGO I The Greenlining Institute APRIL 2012 About the Greenlining Institute The Greenlining Institute is a national policy, research, organizing, and leadership institute working for racial and economic justice. We ensure that grassroots leaders are participating in major policy debates by building diverse coalitions that work together to advance solutions to our nation’s most pressing problems. Greenlining builds public awareness of issues facing communities of color, increases civic participation, and advocates for public and private policies that create opportunities for people and families to make the American Dream a reality. About Greenlining’s Consumer Protection Program and Our Legal Team Led by General Counsel Samuel Kang, Greenlining uses inhouse legal experts to ensure that there is equity in the state’s energy, telecom, and cable industries. Greenlining’s legal team is one of the few active racial justice advocates at the California Public Utilities Commission, the Federal Communications Commission, and other regulatory bodies. They work closely with grassroots leaders to ensure that the needs and solutions of communities of color are represented in the halls of these commissions. Greenlining plays a critical role in ensuring that California’s regulated companies remain leaders on issues of diversity and economic equity. In addition, our legal team builds bridges between grassroots leaders and corporate CEOs to ensure that positive dialogue leads to winwin solutions.
    [Show full text]
  • SUMMER 2021 Tax Compliance Software Category
    SUMMER 2021 Customer Success Report Tax Compliance Software Category Tax Compliance Software Category Tax compliance software gives you accurate federal and local tax computations, and automates tax filing and reporting. Top vendors present different solutions to manage specific types of transactions and their linked taxes. Sales tax compliance programs compute and process relevant taxes to be charged across jurisdictions. Further, Value-Added Tax (VAT) applications monitor regulations and automate computations across intricate scenarios. Advanced tax compliance tools support custom tax management for global sales. Many vendors also deliver managed audit reporting and tax filing for businesses of all sizes. SUMMER 2021 CUSTOMER SUCCESS REPORT Tax Compliance Software Category 2 Award Levels Customer Success Report Ranking Methodology The FeaturedCustomers Customer Success ranking is based on data from our customer reference platform, market presence, MARKET LEADER web presence, & social presence as well as additional data Vendor on FeaturedCustomers.com with aggregated from online sources and media properties. Our substantial customer base & market ranking engine applies an algorithm to all data collected to share. Leaders have the highest ratio of calculate the final Customer Success Report rankings. customer success content, content quality score, and social media presence The overall Customer Success ranking is a weighted average relative to company size. based on 3 parts: CONTENT SCORE ● Total # of vendor generated customer references (case studies, success stories, testimonials, and customer videos) ● Customer reference rating score TOP PERFORMER ● Year-over-year change in amount of customer references on Vendor on FeaturedCustomers.com with FeaturedCustomers platform significant market presence and ● Total # of profile views on FeaturedCustomers platform resources and enough customer ● Total # of customer reference views on FeaturedCustomers reference content to validate their vision.
    [Show full text]
  • Countries' Effective and Efficient Use of Tax Incentives for Investment
    Options for Low Income Countries' Effective and Efficient Use of Tax Incentives for Investment A REPORT TO THE G-20 DEVELOPMENT WORKING GROUP BY THE IMF, OECD, UN AND WORLD BANK Options for Low Income Countries’ Effective and Efficient Use of Tax Incentives for Investment A REPORT TO THE G-20 DEVELOPMENT WORKING GROUP BY THE IMF, OECD, UN AND WORLD BANK This report was prepared at the request of the G20 Development Working Group by the staffs of the International Monetary Fund, the Organisation for Economic Co-operation and Development, the United Nations and the World Bank. I t h a s benefitted from consultation with other organisations working in the tax area, officials of developing countries, Civil Society Organisations, and business representatives. The report is prepared under the responsibility of the Secretariats and Staff of the four organisations. It reflects a broad consensus among these staff, but should not necessarily be regarded as the officially-endorsed views of those organisations or their member states. The report was presented as requested to the G20 DWG in September, 2015, and to the Executive Board of the IMF for information, in October, 2015. OPTIONS FOR LOW INCOME COUNTRIES' EFFECTIVE AND October 15, 2015 EFFICIENT USE OF TAX INCENTIVES FOR INVESTMENT EXECUTIVE SUMMARY Experience shows that there is often ample room for more effective and efficient use of investment tax incentives in low-income countries. Tax incentives generally rank low in investment climate surveys in low-income countries, and there are many examples in which they are reported to be redundant—that is, investment would have been undertaken even without them.
    [Show full text]
  • 33967075.Pdf
    25*$1,6$7,21Ã)25Ã(&2120,&Ã&223(5$7,21Ã$1'Ã'(9(/230(17Ã Ã - Ã &(175(Ã)25Ã7$;Ã32/,&<Ã$1'Ã$'0,1,675$7,21Ã ABATEMENT ABUSE OF LAW ACCELERATED DEPRECIATION ACCOUNTING BASIS , ACCOUNTING PERIOD ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTING RECORDS - , ACCRUAL BASIS (ACCRUAL METHOD) , , AD VALOREM TAX ADMINISTRATIVE COMPANY - ADMINISTRATIVE EXPENSES . ADMINISTRATIVE OFFICE ADVANCE PRICING ARRANGEMENT (APA) ADVANCE RULING AFFILIATED COMPANIES - AFFILIATION PRIVILEGE , ( ). AGENCY AGGREGATION ALIEN, TAX TREATMENT OF - ALIENATION OF INCOME ALLOCATION ALLOWANCE AMORTIZATION AMORTIZATION METHOD APPORTIONMENT METHOD ARBITRAGE ARBITRAGE, TAX ARBITRATION « » ARM’S LENGTH PRINCIPLE © ª © ª ARM’S LENGTH RANGE © ª ARM’S LENGTH TRANSACTION ASSESSMENT
    [Show full text]
  • Sales Tax Holiday Q & A
    Sales and Use Tax – Sales Tax Holiday Q & A 1. When is the Sales Tax Holiday? The West Virginia State Sales Tax Holiday will begin this year at 12:00 a.m. on Friday July 30th, 2021 and will end at 11:59 p.m. on Monday August 2, 2021 The West Virginia State Sales Tax Holiday begins each year on the Friday before the first Sunday in August and ends the following Monday. 2. What items qualify for the sales tax holiday? During the holiday, the following items are exempt from Sales and Use tax: - Certain clothing with a purchase price of $125 or less - Certain school supplies with a purchase price of $50 or less - Certain school instruction material with a purchase price of $20 or less - Certain laptop and tablet computers with a purchase price of $500 or less; and - Certain sports equipment with a purchase price of $150 or less. Items purchased for use in a trade or business are not exempt under the sales tax holiday. 3. Can multiple qualifying items be purchased in a single tax-exempt transaction? There is no limit on the amount of the total purchase. The qualification is determined by each individual item. 4. What item of clothing qualify? “Clothing” includes, but is not limited to, shirts; blouses; sweaters; pants; shorts; skirts; dresses; uniforms (athletic and nonathletic); shoes and shoe laces; insoles for shoes; sneakers; sandals; boots; overshoes; slippers; steel-toed shoes; underwear; socks and stockings; hosiery; pantyhose; footlets; coats and jackets; rainwear; gloves and mittens for general use; hats and caps; ear muffs; belts and suspenders; neckties; scarves; aprons (household and shop); lab coats; athletic supporters; bathing suits and caps; beach capes and coats; costumes; baby receiving blankets; diapers, children and adult, including disposable diapers; rubber pants; garters and garter belts; girdles; formal wear; and wedding apparel.
    [Show full text]