There can be a learning curve in understanding gross receipts taxes. The course is also designed for general practitioners, with minimal to no experience. This webinar is intended for financial and operations personnel-including tax, general accounting, accounts payable, sales, tax technology, purchasing and credit-who are tasked with managing gross receipts taxes as part of their responsibilities. Learn how to manage gross receipts taxes in this 90-minute webinar. You need a framework to determine if these taxes affect your business in order to stay compliant. There is a resurgence of gross receipts taxes of varying stripes across the United States that can lead to new nexus and filing obligations for businesses. However, most sales tax professionals specialize in just that – sales tax – and may not be aware of how to manage the specific nuances of gross receipts taxes. In many cases, the responsibility to manage these hybrid taxes falls to sales tax professionals. In some states, it is a replacement or additional income tax and yet in others it is administered as part of the business license process. Sometimes a state’s gross receipts tax may “look and smell” like a sales tax but is not applied in the same way. The imposition of gross receipts taxes borrows concepts from other tax types. So essentially they are saying “gross receipts” is not actually gross receipts in the traditional sense of the term and is actually gross receipts less COGS.ĭo any of you have an interpretation of this or thoughts on how you believe it is appropriate to present or handle this on applications?Īppreciate any and all insights as I am trying to handle this for a client first thing in the AM.Gross receipts taxes are generally levied and assessed against a seller based on the gross proceeds of all sales of tangible personal property and/or services (regardless of how they are taxed for sales tax) into a state without any deductions for costs of doing business. What I don’t understand here is they appear to be including COGS in this calculation. All other items, such as subcontractor costs, reimbursements for purchases a contractor makes at a customer's request, investment income, and employee-based costs such as payroll taxes, may not be excluded from gross receipts.” Gross receipts do not include the following: taxes collected for and remitted to a taxing authority if included in gross or total income (such as sales or other taxes collected from customers and excluding taxes levied on the concern or its employees) proceeds from transactions between a concern and its domestic or foreign affiliates and amounts collected for another by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder or customs broker. Generally, receipts are considered “total income” (or in the case of a sole proprietorship, independent contractor, or self-employed individual “gross income”) plus “cost of goods sold,” and excludes net capital gains or losses as these terms are defined and reported on IRS tax return forms. “Gross receipts includes all revenue in whatever form received or accrued (in accordance with the entity’s accounting method) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances. The definition is on page 22 about halfway down on the line starting with (2)(i): However, in reading through the IFR on PPP2, the SBA defines gross receipts as income less COGS. To most anyone (I would assume), gross receipts means income aka only money coming in.
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