Consumer Use Tax: A Bane For Businesses

This Avalara whitepaper, “Consumer use tax: a bane for businesses,” addresses the often-overlooked complexities and compliance challenges associated with consumer use tax. It highlights how businesses frequently misunderstand or ignore this transaction tax, which applies when sales tax is not collected at the point of purchase, leading to significant audit liabilities and financial risks. The document explains the critical distinctions between sales and use tax and underscores the necessity for accurate self-assessment and remittance in all applicable states. It compellingly demonstrates how advanced tax automation solutions can streamline the entire process, from identifying taxable transactions to calculating and filing use tax, thereby minimizing errors, reducing audit exposure, and freeing up valuable resources.