State Sales Tax on Drop Shipments: Navigating Various States' Rules on Registrations and Exemptions
Recording of a 110-minute CPE webinar with Q&A
This course will prepare tax specialists to handle the full range of potential sales and use tax issues involved in drop shipments, whether as vendors, shippers, or customers. The panelist will provide an integrated approach to compliance, documentation, and tax planning in this evolving and complex area of tax.
Outline
- Fundamental drop shipping concepts
- Problematic scenarios and issues to anticipate
- Nexus: What are the potential sales and income nexus traps for parties involved in a drop shipment transaction?
- Documentation
- Ongoing compliance demands with drop shipping
- States that pose particular issues
Benefits
The panelist will review these and other key topics:
- What are the larger states' particular rules on drop shipping and sales tax? What is the tenor of audits in those states that don't automatically accept another state's resale certificate?
- What gets taxed if a resale certificate is not accepted: the price the seller charges to the customer or the price the drop shipper charges to the seller?
- What style and level of documentation are prudent, both for the customer invoice and internal recordkeeping at the seller or drop shipper?
- What are the potential sales and income nexus traps for parties involved in a drop shipment transaction?
Faculty
Michael T. (Mike) Dillon
President
Dillon Tax Consulting
Mr. Dillon is an attorney and founder specializing in multistate sales and use tax matters for multistate and... | Read More
Mr. Dillon is an attorney and founder specializing in multistate sales and use tax matters for multistate and multinational businesses. For more than 25 years, as leader of his firm, practice leader for global accounting firms and in-house for two publicly-traded E-commcerce and Technology companies, Mr. Dillon has successfully helped companies identify multistate nexus, negotiate settlements of historical exposure, register and automate sales tax compliance processes, and address risk during M&A activity. He has successfully represented taxpayers in over 200 sales tax audits, and 500 Voluntry Disclosure Agreements (VDA), often coming in when “all hope is lost” to beneficially resolve the matter. Mr. Dillon is a member of the State and Local Tax Advisory Board for Strafford Publications. He is highly sought to lecture and author articles on sales tax matters for organizations such as AICPA, Strafford, BNA, CCH and the Center for Professional Education.
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