Sales & Use Tax

Sales & Use tax compliance is becoming a severe issue. State and local governments are rapidly revising tax laws to increase revenue, while Congress is considering granting states the authority to make remote sellers charge sales tax.Tax levied upon customers when a retailer, or service provider fails to collect sales tax on goods and services sold.

In many states, citizens are required to pay sales tax on goods and services at the time of purchase. Most often, when purchases they are done are made physically in a retail store, or directly from a service provider.  Then the retailer collects the sales tax and they are responsible for submitting the collected taxes to the state.However, there may be times when the retailer or business service provider fails to collect the required tax. In those cases the responsibility of paying the taxes due lies with the purchaser.Additionally, when a citizen makes a purchase of an item from within the state but the retailer is selling from another location, the citizen is required to pay the sales & use tax for the purchases made because they reside in and use the item within the state, thus, the sales and use tax.

Sales Tax is imposed on the gross receipts derived from both retail sales of tangible personal property, digital property, and sales of certain services to the final customer in Kentucky.

Use Tax is imposed on the purchase price of tangible personal property, digital property purchased for storage, use or other consumption in Kentucky. The use tax is a "back stop" for sales tax and generally applies to property purchased outside the state for storage, use or consumption within the state.

Our sales and use tax practice includes the following Services:

  • Sales and use tax process review

  • Reverse sales and use audit

  • Sales and use tax automation

  • Nexus evaluation and management