Sales Tax Refund Review
Organizations often overpay sales and use tax. The refund recovery process can help your business identify refunds and avoid overpayments.
Sales Tax Refund Review
Businesses operating and paying sales and use tax in numerous jurisdictions could be at risk for significant overpayments due to the increasing complexity of multistate sales and use tax laws.
Sales and use tax laws were originally based on traditional sales of tangible items, but with the continuing shift towards a digital and services-based economy, states are seeking to expand the tax base to capture the new and different ways commerce is being conducted.
Conducting a sales and use tax refund review to identify overpayments could help recover cash to put back into your business. Identify your sales and use tax overpayments and navigate the complex refund process with guidance from our professionals—so you can regain cash while staying focused on growing your business.
Reviews can help support:
- Refunds of tax overpayments
- Identification of corrective measures
- Improvement of sales and use tax compliance processes
Retail, hospitality, and restaurants
- Items purchased for resale
- New store opening related construction contract
- Software related exceptions
- Equipment used in restaurants
Manufacturing, energy, and renewables
- Manufacturing and R&D equipment
- Repair and replacement parts
- Severance tax
- Purchases for resale
Health care, medical device, and pharma
- Manufacturing and R&D equipment
- Qualified medical supply or equipment purchases
- R&D and clinical trials
Technology, software, and telecommunications
- Manufacturing and R&D equipment
- Technology Transfer Agreement
- Custom software
- Multistate user base
- Incorporated into resold services
- Telecommunications transmission equipment
Construction contractors
- Government contract related direct or indirect materials purchased
- Purchases for resale
- Equipment used in an offsite manufacturing or R&D operation
Overpayment reviews can be particularly helpful for businesses that recently:
- Invested substantially in operations—such as starting a new business line with investment in machinery and equipment
- Implemented new technologies, updated operations, or added new lines of business
- Acquired a new business or merged operations
- Experienced turnover in the company’s sales tax or accounts payable divisions
- Relied on manual sales tax calculation processes or recently implemented a new general ledger system
- Expanded operations into one or more new states
