State Sales Tax on Drop Shipments: Navigating Various States' Rules on Registrations and Exemptions
Recording of a 110-minute CPE webinar with Q&A
This course will prepare corporate tax specialists to handle the full range of potential sales and use tax issues involved in drop shipments, whether as vendors, shippers, or customers. The panelist will provide an integrated approach to compliance, documentation, and tax planning in this evolving and complex area of tax.
- Fundamental drop shipping concepts
- Problematic scenarios and issues to anticipate
- Nexus: What are the potential sales and income nexus traps for parties involved in a drop shipment transaction?
- Ongoing compliance demands with drop shipping
- States that pose particular issues
The panelist will review these and other key topics:
- What are the larger states' particular rules on drop shipping and sales tax? What is the tenor of audits in those states that don't automatically accept another state's resale certificate?
- What gets taxed if a resale certificate is not accepted: the price the seller charges to the customer or the price the drop shipper charges to the seller?
- What style and level of documentation are prudent, both for the customer invoice and internal recordkeeping at the seller or drop shipper?
- What are the potential sales and income nexus traps for parties involved in a drop shipment transaction?
Michael T. (Mike) Dillon
Dillon Tax Consulting
Mr. Dillon is an attorney specializing in multistate sales and use tax matters for multistate and multinational... | Read More
Mr. Dillon is an attorney specializing in multistate sales and use tax matters for multistate and multinational businesses. For more than 20 years, as leader of his firm, practice leader for global accounting firms and in-house for two publicly-traded technology companies, Mike has successfully helped companies identify multistate nexus, negotiate settlements of historical exposure, register and automate sales and use tax compliance processes, and address risk during M&A activity. Mike has successfully represented taxpayers in over 200 sales tax audits, often coming in when “all hope is lost” to beneficially resolve the matter. He is highly sought to lecture and opine on sales tax matters.Close