Vendor Tax Compliance: What You Need To Know

 We recently received an increasing number of inquiries regarding tax compliance with respect to payments to vendors — and, especially, foreign vendors. The tax compliance surrounding the use of foreign vendors can be complex and should be understood by management before entering into such arrangements.

This bulletin aims to simplify the process of determining:

• the type of tax documentation that should be acquired from a vendor at the point of engagement,
• whether or not a vendor should receive a form/have taxes withheld,
• the filing thresholds of each form, and
• the due date of each form.