No matter your size, if you are trading outside of the UK you will be eligible for the filing of tax returns and compliance with an array of different rules and regulations. In our combined experience many organisations are either unaware of the complexity, thereby run the risk of audit and fines or they spend significant time and money in managing this through specialist accountants. Whichever way you look at it, tax is taxing.
Trading with the US
With over 12,000 taxing jurisdictions across 45 states, each able to alter rates and rules with little warning, there is massive complexity for the UK business and fines are prevalent.
Companies need to collect sales tax if they are deemed to hold NEXUS in a particular state. NEXUS is a connection or business presence in a state or jurisdiction and can be applied by having a store, franchise or presence on Amazon, employ staff directly or via an agency, even attend a tradeshow in that particular state.
No reliance on expensive tax specialists
VAT rates and thresholds vary considerably around the world and yet, in a recent study conducted by Avalara over 80% of companies admitted to relying on Excel to manage their VAT reporting, leading to huge spreadsheets and massive complexity. Managing the idiosyncrasies of international tax can result in employing a bank of tax specialists or paying through the nose for specialist support from your accountant. But it is essential – non-compliance can result in nasty fines.