78: Navigating the Ever-Changing World of Sales Tax in 2022

In the world of taxes, change is to be expected. This is especially true when it comes to sales tax. Since the pandemic, there have been many changes to laws and regulations, and the rules regarding sales taxes are no exception. 

What significant sales tax changes have occurred due to COVID-19, and how are business owners and tax practitioners supposed to keep up with all of these ongoing developments?

On today's episode of the Taxgirl podcast, Kelly is joined by Liz Armbruster to talk about the changes we have experienced since the start of the COVID-19 pandemic and how we can prepare for continued developments. Liz oversees global compliance operations at Avalara. With more than 20 years of leadership experience in various technology sectors, including software, media, and services, Liz is known for her strong track record of innovative problem solving, process optimization, and ability to deliver automation for efficiency and scale.

Listen to Kelly and Liz discuss the impact that COVID-19 has had on sales tax changes and what we can expect in the future:

• What kind of impact does Liz see on taxes since the onset of the COVID-19 pandemic? Does she have any sense of how long we'll be dealing with some of these changes?
• How are Government agencies reacting or being proactive to the tax changes brought on by COVID-19?
• How could changing tax laws affect businesses currently exercising remote or hybrid work structures? Should companies be considering the potential of creating a nexus in another state due to their remote work policies?
• Liz explains what business owners should be paying attention to, especially when selling out of state, to ensure that they fulfill their obligations as sellers and comply with tax laws.
• An unexpected development from the pandemic was that some states saw a surplus in revenue. What trends could we see from these states as a result of this development, and how could this affect their collections process? Liz discusses her predictions for changes on the horizon due to these surpluses and what this could mean for businesses in states that are more reliant on sales tax.
• The value-added tax (VAT) changes in Europe have been in the news lately, and the implementation of real-time reporting has been increasingly popular. Does Liz think this is coming to the U.S.? If so, is it a good thing, and what should people be looking out for?
• The U.S. likes to think of itself as the leader in technology and other sectors, but when it comes to technology for taxes, we seem to be lagging behind other countries. What are some examples that Liz sees of other countries with advances or differences in tax technology that we're not yet experiencing in the U.S.? Are there any upcoming trends that we should be aware of?
• Would increased reporting requirements help mitigate unlawful tax practices in the U.S.? Would the increased transparency from real-time reporting change how companies do business in the U.S.?
• All of these moving parts and changes in tax practices can be overwhelming for business owners and tax practitioners. So in 2022, what should people be focusing on? What is the one thing Liz would counsel people to be aware of in the upcoming year?

More about Kelly:

Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things that she does is help folks out of tax jams, and hopefully, keep others from getting into them.

You can find out more about Kelly here and you can follow her on Twitter, Facebook, Instagram, and Linkedin.

To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app, click here.

Links:

Kelly’s Website – Taxgirl

Liz’s Company Profile – Avalara

Avalara, Inc. LinkedIn – Avalara

Avalara, Inc. Twitter – @Avalara

Avalara, Inc. Instagram – @Avalara

Avalara Tax Changes 2022 – Report