{"id":13682,"date":"2023-01-12T10:13:30","date_gmt":"2023-01-12T15:13:30","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=13682"},"modified":"2026-02-12T04:23:08","modified_gmt":"2026-02-12T09:23:08","slug":"discover-the-tax-changes-you-need-to-know-in-2023","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/discover-the-tax-changes-you-need-to-know-in-2023\/","title":{"rendered":"Discover the tax changes you need to know in 2023"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tMoney Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tDiscover the tax changes you need to know in 2023\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"lindsay-bushweller\"\t\t\t\tLindsay Bushweller<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

Businesses will need to be adaptive and ready to respond to emerging international trends, all while keeping up with their tax compliance to thrive in 2023. Utilizing tax compliance software<\/a> is essential to navigate the complexities of sales tax changes, economic uncertainty, and emerging technological trends efficiently.<\/p>\n\n\n\n

That\u2019s because significant tax changes are set to affect key industries over the next 12 months, while ongoing supply chain challenges threaten to impact tax obligations.<\/p>\n\n\n\n

To stay on the right side of the law, businesses will need to know about any issues that have the potential to complicate their tax compliance over the coming year.<\/p>\n\n\n\n

Let\u2019s start by looking at sales tax because it affects a wide range of industries, including retail, manufacturing, and software. It\u2019s also a complicated topic with many different facets that businesses need to understand.<\/p>\n\n\n\n

In this article we will cover:<\/p>\n\n\n\n

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  1. Sales tax changes<\/a><\/strong><\/li>\n\n\n\n
  2. Economic uncertainty and ongoing supply chain challenges<\/a><\/strong><\/li>\n\n\n\n
  3. Technological developments demand new tax policies<\/a><\/strong><\/li>\n<\/ol>\n\n\n\n

    <\/p>\n\n\n\n

    1. Sales tax changes<\/h2>\n\n\n\n

    US sales tax is imposed on the ultimate consumer of a seller\u2019s products or services and, to further complicate the situation, it\u2019s primarily regulated at the state level.<\/p>\n\n\n\n

    With 46 states\u2014each with its own tax rate\u2014and typically thousands of sales tax rate updates every year, it\u2019s easy to understand how businesses can become overwhelmed by the sheer volume of tax rates they need to track to stay compliant. And events like sales tax holidays only complicate matters further.<\/p>\n\n\n\n

    Sales Tax Holidays<\/strong><\/p>\n\n\n\n

    Sales tax holidays are when certain normally taxable products become exempt from sales tax for a limited period of time. And while they\u2019re great news for consumers, they present a real challenge for retailers who need to exempt qualifying sales during each tax-free period.<\/p>\n\n\n\n

    Add to this the fact that while some state\u2019s sales tax holidays provide full exemptions for qualifying products, others only exempt a certain amount of the sales price\u2014a complex and challenging situation when it comes to sales tax compliance. <\/p>\n\n\n\n

    And sales tax holidays don\u2019t just affect US retailers. They can affect any retailer\u2014international sellers included\u2014deemed to have sales tax nexus in a US state.<\/p>\n\n\n\n

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    2023 Sales Tax Changes<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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    Webcast for Sage customers and partners. January 25 at 1 p.m. ET<\/p>\n

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    Register today to be in the know of the newest developments and trends in tax legislation and what to expect in 2023.<\/p>\n

    <\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tRegister<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n\n\n

    What is sales tax nexus?<\/strong><\/p>\n\n\n\n

    Sales tax nexus is the idea that if a business has some kind of presence in a particular state, that business is bound to comply with that state’s particular sales tax laws.<\/p>\n\n\n\n

    There are two sales tax nexus standards:<\/p>\n\n\n\n

    Physical nexus<\/strong><\/p>\n\n\n\n

    The first and oldest standard is physical nexus\u2014a \u2018boots-on-the-ground\u2019 business presence in a state. Physical nexus is triggered by activities that include, but aren\u2019t limited to:<\/p>\n\n\n\n