Miles Consulting Group, Inc.

If you handle sales tax compliance out of order, you might end up paying for the same thing twice or worse, make the problem bigger than it needed to be! We've worked with hundreds of clients over the years using a six-step approach that's saved them millions in taxes, penalties, and interest. Here's how it works: 👣 Nexus review – figure out where you need to be filing 👣 Exposure analysis – see what you potentially owe 👣 Remediation – fix past issues through VDAs and back filings 👣 Start collecting and remitting tax going forward 👣 Implement the right software solution 👣 Hire a consultant to help (this could actually also be step one!) Each of these steps is complicated on its own, but when you follow them in order, the process is a lot easier. We've used this with clients from small startups to Fortune 500s because it logically flows and gets you where you need to be. If you're dealing with sales tax compliance issues, let's talk about how we can help.

Has your business expanded into a new state? Let’s make sure you understand your nexus footprint 👣 The laws that create sales tax nexus vary state by state but overall, most states agree that a physical or economic presence creates nexus. Nexus can now be triggered by how much you sell, who your affiliates are, whether you rely on click-through referrals, or even the cookies placed on user devices! We talk daily with potential clients who want to be compliant but are unsure where to begin. A common question is, “Can I just register and start collecting now?” Unfortunately, the answer is no. Most states require companies to indicate exactly when nexus was created on their registration forms, often signed under penalty of perjury (that’s one of the reasons why a nexus study can be so helpful by the way). If you’re planning for growth, preparing for a sale, or simply trying to keep compliant with sales tax, knowing your nexus footprint is a smart first step. If you're unsure where you stand, feel free to reach out to us.

Let's continue our state compare and contrast blog series with a look across the Great Rolling Plains. We compare Nebraska and Kansas and explore how each state approaches the ever-evolving world of technology for sales tax purposes. https://lnkd.in/guW_9Z7a

Happy 24th Birthday to Miles Consulting Group! 🥳 To our wonderful clients, thank you for trusting us with your business. Your partnership makes all of this possible. And to our amazing team, we thank you for all that you do. Can you believe that next year marks our quarter-century birthday!

The South Carolina Supreme Court ruled against Amazon last week in a decade-long sales tax dispute. Amazon's argument was straightforward: we are just the platform. We do not own the goods so the obligation to collect and remit sales tax sits with the third-party sellers, not us. The court was not convinced and it found that Amazon had such control over those transactions that it was effectively in the business of selling and therefore, on the hook for the tax. This is not a new problem. This goes back to 2016! Three years of uncollected tax that never went away and it just sat there growing. The ruling covers $12.5 million, but 10 years later, it now opens the door to $277 million in additional exposure from two cases that were waiting on this outcome. We cannot say this often enough... Past sales tax exposure does not disappear. It does not get easier to deal with the longer you leave it. It compounds. If one of the most well-resourced companies in the world could not make the "we are just the platform" argument stick, no business should take its sales tax position for granted. Getting ahead of your sales tax exposure is always easier than dealing with the bill later.

If you are in the Silicon Valley area on April 23, clear your calendar. Miles Consulting Group are proud to sponsor the NAWBO Silicon Valley Corporate Partner Luncheon. The event's keynote speaker is Fiona Ma, California's State Treasurer. First elected in 2018 and reelected in 2022 with the highest vote total in state history for this office, Treasurer Ma is the first woman of color and the first CPA to hold this constitutional role. As California’s chief banker, she oversees an average $165 billion investment portfolio and manages approximately $3 trillion in annual transactions supporting schools, housing, transportation, healthcare, and critical public infrastructure statewide. Treasurer Ma will be speaking on California's economic outlook, public-private collaboration, and what it really means to invest in women-owned businesses. The luncheon brings together corporate decision-makers and women entrepreneurs and if you care about supplier diversity, building the right relationships, and what is actually happening in California's economy right now, you want to be in the room. Tickets and Info: https://lnkd.in/gW5Fz5qH

Live from the Mississippi river, where we've been immersed in all things sales tax by day, and learning about alligators by night (check out yesterday's video) 😁 🐊 Speaking of Mississippi, if your SaaS company has customers in the state, there's an important nuance worth knowing. SaaS is generally not taxable in Mississippi, unless the software is hosted on a server inside the state. The location of the server matters so get that wrong, and your taxability analysis could look very different. We wrote a compare and contrast blog of Alabama and Mississippi last year. Spending time on the river this week felt like the ideal time to share it again. https://lnkd.in/gBdZWuM8

If your HQ is in a country with a national consumption tax system, the US approach to sales tax can feel complicated. Each state acts as its own tax authority with the power to determine what’s taxable, at what rate, and under what conditions. For foreign companies scaling in the US, this creates several strategic challenges that go beyond simple compliance. 🔹 Your pricing strategy needs to account for the fact that your SaaS product might be taxable in one state, but excempt in another. 🔹Your billing systems must handle varying rates not just by state, but often by city or county within states. 🔹Your customer communications need to explain why some clients see tax on their invoices while others don’t, even though they’re buying the exact same service. The implications extend to your broader business operations as well. 🔹If you’re preparing for a funding round, investors will conduct due diligence on your tax compliance. Gaps or exposure in sales tax compliance can delay deals or affect valuations. 🔹If you’re considering an acquisition, either as buyer or seller, unresolved sales tax liabilities create successor liability issues that can complicate transactions. Getting compliance right isn’t just about avoiding penalties. It’s about positioning your company for sustainable growth in the US market. Need clarity on where you might have triggered nexus? We offer a complimentary consultation to help foreign companies assess their US sales tax exposure and avoid downstream compliance issues. Contact us directly on LinkedIn for more info.

The US SaaS market represents roughly 50% of global SaaS revenue and is forecast to reach the mid-$200 billion range by the early 2030s. With over 17,000 SaaS companies operating in the US alone and the average company now using 275 SaaS applications, the market opportunity is undeniable. For foreign SaaS, tech, and AI companies, the question isn’t whether to scale in the US but how to do it successfully while understanding the regulatory requirements that come with that growth. One of the most significant challenges you’ll face as you expand operations in the United States is sales tax compliance for SaaS and its related revenue streams. Unlike the unified national tax systems common in many countries, the US operates a decentralized structure where each of the 50 states sets its own tax rules, rates, and exemptions. Fun, right?! For technology companies selling software-as-a-service, cloud-based solutions, or AI products, this complexity increases because states don’t agree on how to classify and tax the offerings. This guide is written specifically for foreign SaaS and technology companies that are already operating in the US market and looking to scale responsibly. Whether you’re expanding from a few states to nationwide coverage, preparing for a funding round, or simply realizing that your current approach to SaaS sales tax might have gaps, this guide walks you through what you need to know to get it right. https://lnkd.in/gGe4D5_B

5 sales tax mistakes to avoid as your SaaS offering grows. We see the same patterns come up again and again. If your company bundles software with implementation, training, or AI features, here's what to watch out for. 1. Assuming all states treat add-ons the same way Some states exempt training or implementation when separately billed so companies assume that protection applies everywhere. Sadly it doesn't. You can't apply a single rule across your entire customer base. 2. Thinking separate billing always protects you Line-itemizing your invoice helps in many states, but it's not a universal shield. Some states look through your invoicing to the economic substance of the transaction and tax related services regardless of how they're billed. 3. Inconsistency between your contracts, invoices, and marketing materials If these documents describe your services differently, you're creating questions about what you're actually providing. States look at the totality of the transaction and inconsistency makes it much harder to defend your tax treatment. 4. Not documenting the business purpose of your services Claiming implementation work is non-taxable professional consulting? You need to be able to show what those consulting services actually involve, how they differ from basic software setup, and why they add distinct value. Without that documentation, the characterization is hard to defend if challenged. 5. Assuming AI features follow different rules Unless you have specific state guidance saying AI-powered services are treated uniquely, assume they follow the same rules as your other software features. Getting this right requires more than a blanket policy. State-by-state analysis matters and so does consistency across every document your company produces.