How adding products and sales channels changes the course of sales tax

In its first years doing business, direct-selling cosmetics powerhouse Avon consisted of one-man selling books door to door. Toy giant Hasbro got its start selling textile remnants and, later, school supplies. The Marriott hotel empire grew from a single Washington, D C., root beer stand to a lodging and hospitality titan, while Samsung evolved from a noodle exporter into one of the world's leading electronics manufacturers.

Change is a natural part of growth for smart businesses. But venturing into new’ sales channels and selling new products can have unintended consequences — and may even put your tax compliance efforts in jeopardy. While sales and use tax may not be top of mind when adding products and sales channels, compliance failures present a significant source of risk for growing companies.

This paper explores how shifting products and sales channels can impact tax compliance — as well as best practices to successfully navigate these changes while minimizing risk.