September 2021 Roundup: Tax laws you need to know

While you focus on your business, we stay on top of legislative and policy changes that can affect your tax compliance.

September came and went like a hurricane, leaving behind a raft of tax policy updates.

If COVID-19 is here to stay, what does that mean for COVID-19 tax policies?

COVID-19 tax relief is coming to an end in Massachusetts, but not all policies will return to their pre-pandemic states. The most surprising change will take effect in 2022, when Massachusetts businesses will be required to report in-store sales separately from online sales, and cash sales separately from credit card transactions. Learn more.

What’s good enough for sales tax should be good enough for fees.

California and Texas are making marketplace facilitators responsible for a growing number of taxes and fees. Illinois isn’t, at least for now. Learn more.

Because I said so.                                                                                                       

“Does your state impose tax on products transferred electronically other than digital audio visual works, digital audio works, or digital books?” Last year West Virginia answered, “No.” This year it says, “Yes.” Learn more.

Now, where did they put my inventory?

Determining if and where your Fulfillment by Amazon (FBA) inventory gives you nexus can be exasperating. Learn more.

Strive for one version of the truth.

Excise tax data integrity has challenged growing organizations. Keeping systems and data current and basing decisions on a single version of the truth helps ensure transactional accuracy. Learn more.

Up and down.

New tax rates and new tax policies take effect in several states on October 1, 2021. Learn more.

You don’t need to turn on your camera.

Given the ongoing pandemic, some people may prefer online instruction over in-person instruction where possible. Yet businesses that offer online instruction may create unexpected sales tax obligations. Learn more.

Setting up for success.

When looking to expand into international markets, direct sellers need to consider a variety of factors including product restrictions, shipping options, treaties, and customs duty and import tax obligations. Learn more. 

I won’t scratch your back, and you can’t scratch mine.

Idaho has long been considered a reciprocal state for wine retailers, but out-of-state retailers may not be allowed to sell wine directly to consumers in Idaho after all. Learn more.

Rapid growth of third-party providers (TPPs) rattles beverage alcohol industry.

As online marketplaces and delivery apps move into alcohol delivery, states are grappling with how to regulate these unlicensed entities. Learn more.

Rowing against the tides of change.

Breweries, distilleries, and retailers can no longer ship directly to consumers in Nevada. Learn more.

Several beverage alcohol compliance changes now in effect in Texas.

Starting September 1, 2021, Texas has consolidated licenses and permits, established a new fee structure, and launched a new Alcohol Industry Management System (AIMS). Learn more.

Good things come to those who wait.

Out-of-state wineries can ship directly to consumers in Alabama as of August 1, 2021, but the state is still developing its new application process. Learn more.

Bundle love: Combo packages complicate communications and streaming industries.

Bundling new services can help your company grow and boost customer satisfaction — but only if you understand the tax implications of selling products and/or services together. Learn more.

A day without coffee is a day without joy.

That coffee was considered a “bitter invention of Satan” by 17^th century Christian Italians is less surprising than the taxability of coffee drinks in several states. Learn more.

Customs duty and import tax can be bewildering.

Be careful what you send overseas, for you could be saddling the recipient with unexpected customs duty and import tax. Learn more.

Wait a minute, what?

If a customer acts in breach of a contract, a photographer in New York could be responsible for tax on a transaction that should have been exempt. Learn more.

Check out the Avalara resource center for more helpful information.