There are several pitfalls that a company should respect when opening a volunteering agreement. The taxable person must present himself and request the VDA from a State before receiving requests, communications or audit opinions from the State concerned. Some states limit these audit requests, notifications or notifications to the specific type of tax disclosed, while others extend it to all state-administered taxes. This is the most common misunderstanding about voluntary disclosure agreements. The key is that it is a “voluntary” welcome. If the state turns to you to contact you about certain tax defects, the state does not consider this to be voluntarily declared. In recent years, both the federal state and the Länder have strengthened the application of tax collection. Public and local listeners today are much more active and aggressive than they were a decade ago. Law enforcement officers are outrageous when they catch a business owner who has forgotten (or didn`t know) their state tax obligations. If you collected and collected sales tax from your customers but did not divert it to the state, the Florida Department of Revenue can claim that you have committed a theft of public funds. In this case, the state can charge you with a crime. See Florida Statutes Sec. 212.15(2).
A voluntary disclosure agreement is a legal agreement between a state tax authority and a company that acknowledges that it has failed to meet its obligations related to sales and use tax compliance. Through the voluntary disclosure agreement, the company will make all necessary registrations in the state and comply with any unpaid tax obligations. In the future, once the Voluntary Disclosure Agreement program is concluded, the company will have regular monthly, quarterly or annual VAT reporting obligations with the state, depending on the importance of the activity within the state. Every VAT advisor will tell you that a self-declaration agreement, also known as a VDA, is the best way to get a company to meet its hitherto unmet VAT obligations. With the recent change in turnover tax following the Wayfair decision, many companies have found that they now have VAT obligations in states or other local jurisdictions where no turnover tax had been levied before. In other cases, a taxable person may have collected the corresponding turnover tax but has not yet been registered with the State to transfer the turnover taxes collected. Regardless of the reason for the outstanding tax obligations, self-declaration agreements or CIDs are a useful method for establishing contacts and communications with states in which a company needs to take steps to comply with VAT. In voluntary agreements, most states allow a company to estimate its past commitments, simplifying the process. With a few exceptions, Excel calendars for calculating tax commitments are accepted instead of the presentation of all previous VAT returns. States are prepared to make such concessions to facilitate the process, since the main objective of States is to promote voluntary compliance with future and ongoing collection and reporting obligations. In short, the state is ready to give up some of the formalities and even some revenue to bring new taxpayers into the herd. You must collect and reject revenue tax in states where you have a Nexus, an essential link.
Nexus is set up if you have a physical presence in a state, for example.B. in a store or office. In some states, the Nexus is triggered by storing inventory for sale in the state (even in a third-party warehouse), by deliveries to the state, or by sending employees or independent contractors to the state. . . .