To the EU and Beyond! Avalara acquires VAT Applications

To the EU and Beyond! Avalara acquires VAT Applications

Avalara, perhaps the best known and respected purveyor of sales tax compliance solutions in the US, has made another acquisition to expand their service line.  Just announced is Avalara’s acquisition of VAT Applications, provider of the iVAT suite of VAT compliance software and services. The iVAT solutions work for customers doing business in Europe and around the world, providing (among other things) cloud-based VAT compliance services for filing returns on all EU countries… in the required formats and languages.  By incorporating the iVAT solutions into the Avalara product line, the company extends its reach and capability to serve the global market.

To Infinity and Beyond! Buzz Lightyear from Pixar film Toy Story; image from wikipedia

To Infinity and Beyond!

While Avalara solutions are quite popular with US-based small businesses, the solutions are geared to work for businesses of virtually any size. iVAT solutions now take Avalara into EU and beyond, where VAT compliance is a necessity for enterprise as well as small biz (just as sales and use tax compliance is in the US).

Avalara has successfully acquired and incorporated several companies and solutions into its fold over the years, including EZtax, HotSpotTax, SuitePlus and Zytax.  This latest acquisition fills the cloud-based tax compliance solution line very well, and positions Avalara’s portfolio among the most comprehensive available anywhere.

Sales tax and VAT compliance is a big issue for business large or small.  Finding a solution that can not only address the business need, but that can serve businesses across borders and boundaries is essential in serving today’s global economy.  Even the smallest of businesses may find itself doing business internationally, selling to customers via the web often means crossing those lines and introducing new tax and compliance wrinkles and requirements.  Avalara addresses those business needs, and delivers solutions for the market whether it is local or global. It’s light years ahead of the rest.

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J

 

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Arrest for Sales Tax Evasion in Tennessee | TaxRates.com

Business owners and CFOs are experiencing a crackdown on tax liability nonpayments. Cash is tight everywhere, and agencies will only increase collection and enforcement efforts – especially when it involves a public trust. Whether it is sales tax or payroll tax, noncompliance can mean a whole lot more than just fines and penalties.

http://wp.me/p2hGOJ-ft

via Arrest for Sales Tax Evasion in Tennessee | TaxRates.com.

Should you be paying sales tax on your cloud solution?

Should you be paying sales tax on your cloud solution?

There are a lot of undefined issues relating to whether or not sales taxes should be charged and collected on “cloud” services and online applications.  Traditional approaches aren’t quite right, because there isn’t a clear delineation of what is “service” versus “product”.  For example, an online storage service may be “service”, but when you are charged for bandwidth or other elements, it starts to be more product oriented and taxation may apply.  Online applications or cloud hosted software?  In some cases, the platform may be service, but the subscribed application may be taxable software.  It’s a clouded issue for service providers and their customers, alike.

‘Kelley Miller of the law firm Reed Smith, who specializes in technology law and specifically tracks how states have been enforcing cloud taxes, says it’s been a tough issue for states. The DOR says in its ruling that the market is evolving “at a rapid pace.” Traditionally tax laws just don’t work for this new era of cloud computing, she says, because there is not a tangible transaction of a disc or piece of hardware. Massachusetts seems to have echoed findings from other states though, she says. “The essence of the question is, are you buying software that people bought in a box at the store 10 or 15 years ago,” she says. If so, then Massachusetts, and other states, have claimed a right to tax it.’

A recent article on CIO.com discusses Massachusetts rulings on the subject, joining a number of other states in attempting to bring clarity to when cloud computing services should and should not be taxed.  The decisions sound almost as complicated as the underlying issues, so “clarity” obviously doesn’t mean simplicity.

Read the entire article here

Make Sense?

J