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Frequently asked questions.
As a seller, why should I be concerned about my sales tax collection
responsibilities?
State law imposes a sales tax collection responsibility on a company that
is doing business in the state. By failing to register and collect sales
tax, a company can be assessed for the sales tax it failed to collect
from its customers plus penalties and interest. Further, officers of the
company can be held personally liable for any outstanding sales and use
tax liabilities.
As a purchaser, how would my company benefit by subscribing to ezMATRIX ?
Each year, companies invest significant dollars in their technology spend. By subscribing to ezMATRIX you can assure that you are properly structuring these types of transactions to assure that your company is minimizing sales and use taxes on these purchases. ezMATRIX provides the nuances particular to each state, including exemptions for alternative delivery methods, alternative sourcing options, and taxability exceptions related to services that may be deemed part of the sale.
Why does my company need ezMATRIX ?
Sales and use tax exposure is a significant issue for SOFTWARE RELATED TRANSACTIONS. Sales tax laws vary significantly from state to state and are constantly changing. Therefore, it is not uncommon for a company to improperly collect sales tax from its customers. Each year, software companies are assessed for sales taxes that they failed to properly collect from their customers plus penalties and interest; as are purchasers for sales taxes their vendors failed to charge them. ezMATRIX provides your company the tools you need to properly invoice your customers or to properly accrue use tax on SOFTWARE RELATED TRANSACTIONS.
What is included in my subscription?
ezMATRIX provides you the tools you need to make state by
state sales tax decisions in the states in which your company is doing
business. In addition to the taxability matrices for the products and
services you invoice, ezMATRIX also includes a section dedicated
to educational content. The focus of this section is to teach you the
foundations of sales and use taxes, so that you can administer the sales
and use tax function for your company. Sections are dedicated to a variety
of topics, including nexus, determining exposure, participating in amnesty
and voluntary disclosure programs, as well as sales tax nuances applicable
to SOFTWARE RELATED TRANSACTIONS. Additionally, a subscription to ezMATRIX
provides you access to its Member Forum, which provides you with a resource
to discuss questions you have with others for SOFTWARE RELATED TRANSACTIONS on an anonymous
basis.
How do I subscribe?
Call us at (215) 837-9767 or e-mail us at contact@industrysalestax.com.
My Company's software license agreement includes a provision designated,
"Taxes," which provides that the licensee is responsible for
all taxes. As a seller, do I need to collect sales taxes?
This provision is fairly common in software license agreements. This provision
does not absolve your company of its responsibility to collect sales and
use taxes. If your company undergoes a sales and use tax audit, it could
be assessed for the sales tax you failed to collect plus penalties and
interest.
Can I license just one state?
Due to the nature of SOFTWARE RELATED TRANSACTIONS, most companies are operating
as multi-state taxpayers from a sales and use tax perspective. As a result,
a single state option is not available.
Are local sales and use taxes included in ezMATRIX ?
Most local taxes are administered by their respective state. As a result,
many localities follow their state's sales and use tax provisions. Exceptions
do exist. ezMATRIX provides only the state guidelines, but
provides notes throughout to inform you of when you may need to consider
other types of sales and use taxes, and where available, provides appropriate
links to the city and county web sites to assist you.
As a seller, why does my company have to collect sales tax in a state if we don't
have a location in the state?
Companies are required to collect sales tax if they have nexus in a state.
Nexus refers to the degree or extent of activity a taxpayer has in a state
that subjects them to the state's taxing jurisdiction. From a sales and
use tax perspective, nexus is an extremely low threshold. Soliciting sales
in a state, through some form of physical presence (i.e., an employee
or sales representative) is enough to create a sales
Still have a question?
Please click here to contact us.