The use of company credit and procurement cards is standard practice in many businesses and industries. The cards have numerous benefits, but they are not without their challenges. Savvy business and financial people understand how these instruments of convenience can turn into nightmares if not properly controlled, and they control authorized users and purchases, credit limits, and reimbursement procedures. Are these controls necessary? Absolutely!
That said, in this issue, we would like to bring to your attention another potential problem that can arise from these useful tools: sales tax. That’s right, sales tax. We'll discuss why credit cards can become a sales tax audit nightmare (or at least a bad dream) and what should be done about it.
Length: 2 pages (PDF 120 kB)