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October 29, 2020

Taxation of Digital Products

Online Selling, Tax Planning for Spain, UK Tax Planning /

  For background, please read – US – https://htj.tax/2019/10/navigating-post-wayfair-world.html EU – https://htj.tax/2019/10/distance-selling-in-eu.html Digital Nomads in Asia – https://htj.tax/2018/04/tax-responsibilities-of-digital-nomads.html US Digital Nomads – https://htj.tax/2018/03/non-us-digital-nomads-working-for.html Taxing remote businesses For a government to levy corporate tax on a foreign firm, tax rules require a “nexus” or link between the taxpayer and the taxing jurisdiction, typically in the form of physical presence such […]

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States – Business Activity Tax Nexus Guidance

Online Selling /

  Here’s what we previously wrote on Wayfair and sales and use taxes – https://htj.tax/supreme-court-abolishes-physical https://htj.tax/navigating-post-wayfair-world Some states are going further and now corporate income tax nexus can be triggered without physical presence Wayfair has, for now, answered the question (at least, in part) of whether economic activity creates substantial nexus under the Commerce Clause for

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Responsible Person rules in the wake of Wayfair – You can be PERSONALLY Liable for Sales and Use Taxes

Online Selling /

We previously wrote on this topic – https://htj.tax/navigating-post-wayfair-world https://htj.tax/states-business-activity-tax-nexus If you’re new to remote selling, then I suggest you first start here – https://htj.tax/6-steps-to-starting-your-location Sales and use taxes are “trust fund taxes,” or taxes that the collector holds “in trust” for the state until remittance. These taxes are imposed not on the seller but on

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Register for Sales and Use Taxes in New States

Online Selling /

  We previously wrote on this topic – https://htj.tax/responsible-person-rules-in-wake-of https://htj.tax/navigating-post-wayfair-world https://htj.tax/states-business-activity-tax-nexus If you’re new to remote selling, then I suggest you first start here – https://htj.tax/6-steps-to-starting-your-location Many businesses share the goal of increasing sales and expanding into new markets. But, now that most states tax sales by out-of-state sellers, such growth often brings new sales tax

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Strategies that Partners or LLC Members use to Avoid Self Employment Tax

LLCs /

Ambiguity in the tax law often provides opportunities for taxpayers. For nearly three decades, how earnings of a limited liability company (LLC) are reported for self–employment tax purposes has been unsettled. (LLC in this article also refers to limited liability partnerships (LLPs) and professional limited liability companies (PLLCs).) This uncertainty has created a divergence in practice that

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The EU – Taxing Non Resident Citizens?

Interesting Jurisdictions, Tax Planning for Portugal, Tax Planning for Spain, UK Tax Planning /

Most casual observers like to say that the US is the only country that taxes its non-resident citizens. For tax practitioners we know that this is not true.  International entrepreneurs and expats who travel widely known Eritrea.  But what about other OECD nations.  We know that under some circumstances, the non-resident citizens of the following

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Being Location Independent within the EU

Interesting Jurisdictions, Tax Planning for Spain, UK Tax Planning /

  I previously wrote on the trend towards the EU taxing its non-resident citizens https://htj.tax/the-eu-taxing-non-resident-citizens Similarly, we are frequently approached by location independent international entrepreneurs in the EU who would like to remain in the EU. To understand the freedom of establishment, we refer to Articles 26 (internal market), 49 to 55 (establishment) and 56

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