Sales and use tax
Businesses pay sales and use tax on purchases, and they also accrue it themselves when a supplier does not charge it. Both sides can go wrong. A review checks whether the tax you paid or accrued was owed.
Fairview Audit connects you with a partner firm that carries out the review. Fairview does not give tax advice or do tax work.
What the review looks at
The focus is tax on what you buy, not tax you collect from customers. A partner firm typically examines:
- Tax that suppliers charged on invoices, and whether it was correct.
- Use tax your business accrued or self-assessed, and whether it was required.
- Whether the tax treatment fits how and where the item is used.
- Purchases where the rules are unclear, since similar items can be treated differently.
- The process behind each tax charge, including how your system assigns tax codes.
- Whether a refund may be owed, and what it would take to claim it.
Many businesses assume suppliers apply tax correctly. That is not always the case. In New York and California, for example, a business generally owes use tax on taxable items bought without sales tax and used in the state, and the rate depends on where the item is delivered or used. Rules differ by place. [VERIFY: current rules in the jurisdictions that apply to your purchases]
A review can find overpayments and also underpayments. Be ready for either result.
What you provide
Your partner firm will give you its own list. Common items include:
- Purchase and payment records for the period under review.
- Supplier invoices, with the tax shown.
- Your tax code settings or the rules your team applies.
- Any exemption or resale certificates you hold or have given.
- Records of use tax accrued in your books.
- Notes on past tax audits or disputes.
- Contact details for your tax and accounts payable staff.
If you use an outside accountant, mention it. Your partner firm will want to know who prepared the returns. [CONFIRM: a partner firm supplies and approves what it requires to start]
What happens after you submit a request
You submit a request through one of the Fairview forms. A partner firm contacts you directly. You discuss scope and the engagement terms, then share your records. The firm reports its findings to you.
If the findings suggest a refund or a correction, the next step is agreeing how to proceed. That may involve a supplier, a tax authority or both. You stay involved in each decision. Time limits can apply to refund claims, so ask early. [VERIFY: refund claim deadlines in the relevant jurisdictions]
Fees are set between you and the partner firm. Some partner firms work on a contingency basis.
Who this suits
This type of review fits businesses that buy a wide range of goods and services across several locations. It also suits businesses that:
- Rely on an automated system to assign tax codes.
- Have expanded into new areas recently.
- Buy equipment, software or services where treatment is debated.
- Have never had purchase tax reviewed.
Retail and telecommunications businesses face their own questions. See sales and use tax for retail and sales and use tax for telecommunications.
How Fairview matches you
Choose a request path: larger business, smaller business, or not sure or another need. Each has its own form. Which firm fits depends on your business size. There is no fixed cut-off. Requests go to the matched partner. On the not sure path, Fairview matches by hand.
An independent partner firm that specializes in sales and use tax handles this work. Fairview Audit makes the match. We do not perform the review ourselves.Who does the work
Frequently asked questions
Is this tax advice?
No. The page is general information. A partner firm provides its own services under its own terms, and you should confirm what applies to you with a qualified adviser.
Does the review cover the tax I collect from customers?
This page covers tax paid or accrued on purchases. If you need help with tax you collect, say so on your request.
What if the review shows I owe more?
Your partner firm will explain the finding and your options. Decisions stay with you.
Can I review one supplier only?
You can ask. Scope is agreed between you and the firm.
Related pages
Tell us what you need reviewed. We match you by hand with an independent partner firm. You keep your existing vendors.Find out what you are overpaying.