SALES TAX,  USE TAX AND VAT

 

Texas Successor of Business Liable for Predecessor's Tax Liability - February 6, 2017

On January 19, 2017, the Texas Third Court of Appeals ruled in favor of the Comptroller that a successor or purchaser of a business may be liable for Texas sales and use tax against the business for tax periods prior to the purchase date.  Read More...


Chicago Imposes New Tax on Checkout Bags - January 11, 2017

Beginning February 1, 2017, a Checkout Bag Tax (“Chicago Bag Tax”) is imposed on the retail sale or use of checkout bags in the City of Chicago. The tax is imposed at the rate of $0.07 per checkout bag sold or used in the City. Checkout bags subject to the tax include paper or plastic carryout bags that are provided by a store to a customer for the purpose of carrying goods out of the store.  Read More...


Illinois Court Issues Ruling in Bad Debt Claim Sought by Finance Company - November 14, 2016

On November 2, 2016, the Illinois Appellate Court held that a finance company was entitled to a refund of Retailers’ Occupation Tax associated with uncollectible debt on credit and installment contracts. The refund claim was originally filed by the finance company with the Illinois Department of Revenue. The claim was denied by the Department for, among other reasons, they did not bear the burden of the tax, they were not the remitter of the tax to the State, and the assignments from the retailers did not give the finance company a right to the refund.  Read More...


Chicago Offers VDA For Cloud Products - May 10, 2016

In June 2015, the Chicago Department of Finance adopted Ruling #12 which sought to provide guidance on the taxability of “nonpossessory computer leases.” which the City interprets to include software as a service products and electronically delivered information services. An exemption exists for a nonpossessory computer lease where the customer’s use or control of the provider’s computer is de minimis to the information being provided. How the City defines de minimis has been an area of controversy. Ruling #12, seeking to provide clarification, expanded the scope of products subject to the lease transaction tax to include most online or electronically delivered products.  Read More...