What’s new in tax compliance?
Find out in the sixth annual report from the Avalara tax experts
What’s new in tax compliance?
Find out in the sixth annual report from the Avalara tax experts
Government regulations can be challenging to track and understand during the best of times when there’s minimal geopolitical and commercial upheaval. However, with the pace of change accelerating in the current environment, it’s extremely challenging for businesses of any size to keep up with adjustments to rates, boundaries, deadlines, and overall tax compliance responsibilities.
Our sixth annual tax changes report is born of the wealth of knowledge held by the tax compliance experts at Avalara. It surveys the critical domestic and international tax policy developments of the day and explores emerging trends in taxation and compliance. Avalara is committed to ensuring tax compliance doesn’t interfere with the growth or success of your business.
What is included in the report?
Sales tax changes
Like so many other aspects of daily life, the pandemic has affected sales and use tax compliance. The top three risks to growth in 2022 are 1) the pandemic, 2) supply chain disruptions (triggered by the pandemic), and 3) inflation. Although most COVID-19 tax relief programs have concluded, the pandemic is affecting sales and use tax in other ways: Clogged supply chains have compelled businesses to seek new supply chains, which can lead to new tax obligations; the astounding growth of eCommerce, sparked in part by a desire to avoid stores, has pushed many businesses over economic nexus thresholds in numerous states. Yet a recent survey found that many unregistered small businesses with significant sales in other states believe themselves compliant. But are they?
Global tax changes
Global eCommerce is expected to surpass $4.9 trillion in 2021 and continue upward in 2022 and beyond. Unfortunately, the large volume of cross-border shipments is straining a global supply chain already stressed by COVID-19. Given the backlogs at customs, it’s more critical than ever to label cross-border shipments with the proper Harmonized System (HS) code — and many of these are changing effective January 2022.
Industry tax changes
Manufacturers plagued by labour and supply shortages must continue to properly document exempt sales, claim tax credits, or navigate forays into direct sales. Meanwhile, software and communications companies are dealing with the fact that the pandemic has accelerated digital transformations and turned the spotlight on how such sales are sourced and taxed. In the energy sector, states will likely continue to balance the need for cleaner vehicles with the need for fuel tax revenue. And as the hospitality industry continues to deal with the fallout from travel restrictions, it could be buoyed by the fact that many of us will travel whenever, wherever, and however, we can.
Sales Tax and Global tax changes 2022
- A concise read to all the changes you need to know
- All sales and global tax changes under one roof
- A comprehensive guide to all the sales and global tax changes for Indian sellers selling in the international markets
- A one-stop guide to all the sales and global tax changes for Indian sellers selling in the international markets
