Any presence in the United States such as subsidiaries, assets or sending individuals, etc. can trigger sufficient nexus with one or more of the 50 states and in some local jurisdictions. This allows them to require a company to register, collect, and remit Sales Tax. Foreign companies may also be subject to federal taxes as well as those of any of the thousands of state and local taxing authorities.
Foreign companies sometimes falsely believe that treaties respected by the Internal Revenue Service regarding federal tax breaks will be regarded by the individual states. States typically do not respect such treaties.
States and local jurisdictions often set their own laws on what is taxable. With rare exception, states impose Sales Tax and compensating Use Tax instead of Value Added Taxes (“VAT”). This is further complicated by the many exemptions and varying tax rates throughout these many jurisdictions.
Foreign companies can try and navigate these laws themselves or utilize specialists to assist and represent them. Sales Tax Colorado’s focus is on Sales & Use Taxes; however, we may be able to refer you to others with resources to handle the big picture in relocation and site selection issues. The impact of various taxes and economic incentives for hiring should be considered when making such important business decisions.
At Sales Tax Colorado, we serve businesses that want to keep their competitive edge by successfully navigating the ambiguous, constantly changing, and highly intricate maze of Sales & Use Tax regulations.
Contact us today for a no-obligation consultation about your Sales & Use Tax issues.
