California found that in the 2011/2012 fiscal year the #1 sales tax error for those audited was consumer use tax. According to our partner Avalara, a lot of businesses get consumer use tax wrong. This fun whiteboard video “Consumer Use Tax vs. Sales Tax” simplifies the concept of when businesses and consumers are liable to remit consumer use tax vs. sales tax.
And here’s another great related video, “3 Sales Tax Mistakes that Can Cost You Big”. Will goes through three real scenarios from three businesses, and what they are doing wrong. Make these mistakes and you could either end up with lawsuits, penalties & interest or jail time!
And if you think that is confusing, check out, “6 of the silliest sales tax rules in the U.S.” This video humorously points out just a few, including crazy tax rules from New York, Colorado, Pennsylvania, and more. A bagel in NY? Sales tax exempt. Unless someone slices it for you! As Will points out, “You might not always know the reason for them, but you still have to follow them.”