Sales and Use Tax - Avoiding Double Tax on Drop Shipments

Why Should You Attend:

Drop shippers everywhere are falling prey to state auditors who charge them tax when shipping into their states on behalf of retailers who don’t have nexus there. Retailers claim resale exemption. How can the retailer satisfy the drop shipper and the state auditor?

Through this course, get up to speed on the most complex national sales tax issue and what it takes to comply with the various state regulations. Attendees will learn to identify documentation required under various state laws as they have vastly different requirements.

This webinar will provide valuable insights on the complex issues of interstate sales using drop shippers. Learn more about the obligations of out-of-state (foreign) sellers (drop shippers) to collect the destination state’s taxes unless they obtain appropriate resale certification from foreign retailers – and why this is so difficult to do when a drop shipper is involved.

Areas Covered in the Webinar:

• The structure of the drop shipment transaction and why it could subject the sale to double taxation
• Perform a SWOT analysis of your company regarding sales and use tax drop shipment risk exposure
• What the retailer must provide the drop shipper to avoid this double tax and why it differs from state to state
• Get proactive, know the rules, and coordinate with your drop shipper
• Which states are the most difficult to satisfy
• Learn which states require the retailer to register and use their exemption certificates and sales tax ID numbers to claim the exemption with the drop shipper
• Where to find the regulations that explain these requirements
• Study the research that details this complex issue

Who Will Benefit:

• Tax Managers
• CFOs
• Controllers
• Accounting Managers
• Auditors
• Compliance Managers
• Risk Managers

Miles Hutchinson
President, Sales Tax Advisors Inc

Miles Hutchinson is a CGMA and experienced businessman. He has been an auditor with PriceWaterhouseCoopers and the chief financial officer of a $1 billion real estate development company. Mr. Hutchinson is a professional speaker and consultant who has presented over 2,000 seminars and training sessions on myriad business and financial topics, like financial analysis and modeling, accounting, strategic planning, and compliance with the Sarbanes-Oxley Act. He is recognized as an expert in payroll, and sales and use tax as well as financial modeling and analysis, business strategy and communications.

He is the author of several useful accounting and tax tools. His clients include Abbott Labs, Bank of America, Boston Scientific, Citicorp, Corning, the FBI, the FDA, the Federal Reserve, GE, Pfizer, Siemens, US Marine Corps, and the US Army.

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