Tax & Accounting Blog

Why Nature of Income Paid to Foreign Vendors Matters Part 6 – Exemptions from Withholding

Why Nature of Income Paid to Foreign Vendors Matters Part 6 – Exemptions from Withholding

Whether an exemption from withholding under either income tax rules or an applicable income tax treaty applies depends on the character of the U.S.-source income being paid (as defined by U.S. tax rules). For example, a foreign vendor with income that is effectively connected to the conduct of a U.S. trade or business (called “ECI”) … Read More

Sales Tax vs. Value Added Tax – Calculation and Compliance Differences

Sales Tax vs. Value Added Tax – Calculation and Compliance Differences

Guest Blogger: Diane Yetter, CPA, MST, is founder of YETTER, a sales tax consulting and tax technology firm. Any tax practitioner who deals with company operations in multiple countries should be aware of the differences between sales tax and value added tax (VAT).  While you may be well versed in how sales and … Read More

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Ask The Expert: Rules & Requirements of Voluntary Disclosures

Question: What are Colorado’s rules/requirements related to voluntary disclosure of a sales tax reporting problem? Answer from Nicole Huberty of ONESOURCE Indirect Tax: States typically outline the details of voluntary disclosure programs on their Department of Revenue websites, and Colorado is no exception. Here is the link to the Colorado website: http://www.colorado.gov/cs/Satellite/Revenue/REVX/1224672682801. … Read More