Drop shipments are tricky when it comes to sales tax because of the sheer number of factors at play. They are more complicated than a regular sales transaction and this makes it much more likely to make costly mistakes.
There are three key parties in drop shipment transactions: seller, shipper, and customer. It’s crucial to understand the sales tax treatment during each stage of the transaction no matter your role. Many companies use drop shipments in their daily operations yet don’t realize the impact to their business – until they get billed tax from their supplier! With a little guidance, you can handle drop shipment transactions correctly and avoid negative financial implications.
Handling drop shipments can become second nature for you when you know the rules. Learn how to correctly manage sales tax for drop shipments in light of changes created by the South Dakota v. Wayfair decision and what you can do to mitigate your audit risk.
Who should attend?
The course is designed for general practitioners, finance and operations personnel with minimal to no sales tax experience. It is also recommended for anyone who deals with drop shipments as part of their job responsibilities.
Diane L. Yetter, President & Founder, YETTER and Sales Tax Institute
Diane L. Yetter is the “Sales Tax NerdTM” as well as a strategist, advisor, speaker, and author in the field of sales and use tax. She is president and founder of YETTERTM, a sales tax consulting and tax technology firm in business since 1996. She is also the founder of The Sales Tax Institute, a premier think tank that offers live and online courses to educate business professionals about sales and use tax.More About Diane L. Yetter
Many different types of businesses use drop shipments and don’t realize that may be making a huge mistake when it comes to sales tax. You don’t know what you don’t know!
Drop shipments can create sales and use tax collection and remittance issues for all parties involved, whether you’re the seller, shipper or customer. Different states’ treatments of sales tax for drop shipments varies, and there are multiple factors that can alter the tax treatment of the transaction. Not to mention that the South Dakota v. Wayfair decision has brought about changes for drop shipments. As more companies who are not familiar with the rules are registering in more states, the impact to the seller and the customer grows. Most states have flexible rules, but we are seeing shippers enforcing strict rules unnecessarily.
For example, if you’re a seller and your customer asks you to drop ship and you’re registered in the ship-to state but your customer is not: do you have an obligation to confirm if the customer should be registered in the ship-to state? Or, if the state accepts home-state certificates, can you continue to accept the home-state certificates?
These are the kind of post-Wayfair scenarios you might be grappling with. Learn what the true rules are so you can protect your company from unnecessarily paying tax and having to register if you don’t make retail sales.
It’s complicated – that much is clear! But once you learn the rules and patterns to follow for drop shipments, you’ll start to handle these transactions with ease.
This webinar will clarify every stage of drop shipments so you can understand where your company might have sales tax obligations. We will show you how to avoid the most common (and expensive) mistakes people make when dealing with drop shipments. You’ll even learn what you can do to avoid paying the tax on your purchases – legally!
In this 90-minute live webinar, sales tax expert Diane Yetter of the Sales Tax Institute will teach you the ins and outs of sales tax for drop shipments post-Wayfair so you can feel confident that you’re handling them correctly.
She’ll cover the essential sales tax concepts for drop shipments, common mistakes and how to avoid them, nexus issues that can arise with drop shipments, resale certificate requirements, and more. And during the live Q&A portion of the webinar, you can get answers to your specific sales tax questions directly from Diane. Plus, you’ll get a FREE helpful tool to help you and a discount code for the book she authored for CCH!
Webinar attendees can earn 1.5 hours of CPE credit in the “Taxes” field of study
Prerequisites: This course requires no prerequisites or advance preparation.
Program Level: Basic
Delivery Method: Group Internet-Based