Saturday, July 4, 2020

All About Sales Tax Nexus



The world has turned upside down thanks to the COVID-19 pandemic. The pandemic has caused restaurants to close, companies started to file bankruptcy and massive amount of people became unemployed. But people, especially business-minded ones, saw an opportunity and opened online businesses instead. It’s a smart move because selling online can really be profitable.

I used to think that selling online is more profitable because I don’t have to pay taxes and stuff. It turns out that you’ve made a business out of online selling, it’s a must that you register your business and deal with tax obligations.

 If your business operates in a location that imposes sales tax, you are likely familiar with the concept of sales tax. But, are you familiar with sales tax nexus?

What is Sales Tax Nexus

According to an article from Taxjar, sales tax nexus occurswhen your business has some kind of connection to a state. All states have a slightly different definition of nexus, but most of the time states consider that a “physical presence” or “economic connection” creates nexus.
Just to clarify what physical presence is, they can be the following:
  • -          Personnel
  • -          Having an office
  • -          Having a warehouse
  • -          Storing inventory
  • -          Having an affiliate

-        Temporarily doing physical business in a state for a limited amount of time, such as at a trade show or craft fair

If you have sales tax nexus in a state, then you must collect sales tax from buyers in that state. In a state’s mind, you, as the merchant, are using their roads and other infrastructure to run your business so you should be helping them out by collecting sales tax from your buyers and remitting it back to the state.

This means you must determine the sales tax rate in that state, plus any local sales tax that might apply. For example, the sales tax rate in Beverly Hills (90210) is 9%. That includes a California state rate of 6.5%, plus a Los Angeles County rate of 1% and a district rate of 1.5%.

So in other words, a state would definitely want to have a lot of merchants selling in their area so they can collect a high number of sales tax nexus; the greater sales tax nexus they collect, that’s more revenue for that state.

Is Vat the same as Sales Tax?

According to an article from Thomson Reuters, Value Added Taxor VAT is collected by all sellers in each stage of the supply chain. Suppliers, manufacturers, distributors and retailers all collect the value added tax on taxable sales. Suppliers, manufacturers, distributors, retailers and end consumers all pay the VAT on their purchases. Businesses must track and document the VAT they pay on purchases in order to receive a credit for the VAT paid on their tax return. VAT is actually popular to consumers because this is what we always see on our receipts including grocery receipts, coffee shop receipts, etc.

What Triggers the Tax Administration Requirement?


Sales tax:

Nexus – Taxpayers with a physical presence in a tax jurisdiction or who meet the economic nexus thresholds.

VAT:

Permanent Establishment – Existence of a facility, bookkeeping facilities or ability to enter contracts.
Registration Threshold – Taxpayers with business activities that exceed the monetary threshold in a tax jurisdiction.

That’s all I could provide about tax nexus for now. I hope this article has enlightened you even for a small bit. If you need more information, it’s best you consult  your accountant or anyone who specializes in business tax and finances.

Monday, June 22, 2020

Investing in Real Estate

Investing in real estate is more like an old profession. I remember my parents used to buy cheap land and then they sell it after a few years for a higher price. Some people would also borrow money from a lender and then eventually settle to pay them back with a land title since they don't have any cash available. 

Photo from Pixabay

I would also receive offers from friends to sell a property (house and lot) and then they told me it's up to me how much I wanted to add on top of the property's selling price so it got me to thinking that real estate can be pretty lucrative and generates substantial returns for both short and long term depending on how much time and effort you would render for it.

Sunday, June 21, 2020

GO FOR THE PERFECT 10!


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Tuesday, May 26, 2020

Using Snus May Help You Quit Smoking

I discussed in my previous article about alternative of smoking or how to quit smoking using vape. I'm happy to say that my husband has not smoked a cigarette for more than 5 years now and counting. At that time, vape really did its work. Unfortunately now, vaping is now strictly prohibited in our area so people can't try vaping anymore so most of them resorted back to cigarette smoking especially those who are stressed at work or even at home. 

I used to read something about a tobacco that you can chew as an alternative to smoking, but the catch is the constant spitting and it's just unsanitary for me. One item that stood out for me is this thing smokeless tobacco called snus ( pronounced as "snoose" like "loose). This is very new for me so I researched more about it. 

All About Snus

Snus is moist tobacco that is usually placed under the upper lip, and it usually comes in different kinds of flavours such as wintergreen, mint and the like. It was created in Sweden to help reduce the rate of smoking in the country. The good thing about Snus is that you do not have to burn or smoke it. Also, you do not need to spit when you take it, and it is considered less harmful than cigarettes since it does not pose any harm to your lungs, unlike when you smoke a cigarette. 

They may look like tea bags, but these pieces of snus are actually designed to give users a tobacco hit without having to light up.


History of Snus

According to Wikipedia, in the 16th century, snuff (pulverized tobacco), the precursor of snus (moist snuff), was introduced to France by French diplomat Jean Nicot, who worked at the court of King Henry II of France. He recommended snuff to Catherine de' Medici as a migraine remedy. When she became a regular user of snuff, it became a fashion among the court and upper-class citizens of France, especially among females, as it was deemed more socially acceptable than other forms of tobacco.

Will You Use It?

Snus is available online so basically anybody can purchase it except residents of Europe because it's currently banned there. But since vape is no longer available in our area, I think snus can be a step to help people stop smoking. I mean snus still does have its side effects since it is still tobacco, but if it can help you stop smoking then it's a good alternative until the  user can finally stop using tobacco altogether. Maybe using it in moderation is a good way to go. 

Monday, May 25, 2020

Quality Online Class and Tutorial During Quarantine

I've tried searching online about online classes and tutorials, but unfortunately for most online classes, you have to enroll for the course itself or for the program itself. As you may know, money is really scarce during quarantine because most people are already unemployed and they're trying to save the money that they currently have. 

I have came across an online tutorial site named One Class and I believe it's designed for grade 9 students up to college, and I was so amazed with it. While browsing their website, there is a section called "Homework Help" and I saw lots of problems or questions posted together with answers. I found  lots of problem solving samples from subjects like Accounting, Chemistry, Math, Economics, Statistics, Computer Science, History, and more. 

Here is a sample math problem that was posted and its answer. There's only one answer posted, but if you need more than one, then you need to register to access the multitude of answers available. 

What if Your Question is Not Asked Yet?

You can always click the "Ask a Question" button at the top right and ask your question there. An online tutor will keep in touch 

What if I'm having Difficulty With a Subject or a Series of Problems? 

You're in luck. OneClass.com have online tutors available live 7 days a week. You may book FREE one on one consultations with a tutor on their website. Simply pick a date and choose the tutor you desire. If you have doubts or having second thoughts about the way they teach or about their tutoring, you may also review their past streams posted on their website. That way, you can get an idea on how they teach and if you liked their method of teaching or not. 

SAT Prep Math Live stream Tutorial with Janine
I checked one of Janine's previous streams (pic above) and I really like the way how upfront she teaches. For example in this SAT Prep Math tutorial, she discusses the problem and then writes out her solutions on the screen and then elaborates on where that solution came from by giving more examples so you can understand it easily. Remember, during a live stream, you can always ask questions whenever you reach a part you don't understand so that's the beauty of it. 


During this COVID-19 crisis, Online Class is giving away 100,000 hours of free tutoring sessions so if I were you, schedule your free session now! 


Sunday, March 15, 2020

Lyle Advisors Can Help You Settle Debt Faster



Planning about your finances is really quite a challenge according to almost all the TED talks I've listened to. There's no question about it. P
aying off your marriage expenses, paying off your rent, credit cards, and your children’s enrollment fees may be your financial summary during your 20s or even 30s. During your 40s, you get to think more long term it often features growing responsibilities and ever-competing priorities. Your parents are older, your mortgage is still on foot, children’s education costs are growing, and though retirement may seem a distant reality, planning for that reality becomes an important consideration.

Friday, March 6, 2020

Fashionable Clothing That's Less than Fifteen Dollars!


Summertime is almost near and that means it’s time for me to look for online shops that give me stylish swimsuits but also offers good value. Then I saw Feelingirldress. It’s a bit new to me so I looked around and I was amazed by their selection of clothing. I found active wear, fashion wear, maxi dresses, swim wear, and more. What's more surprising is that their prices only range from 5 dollars to 15 dollars only! 
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