Sales Tax Compliance: How a Vendor Policy Shift Led to a $7,750 Refund

At True Balance Accounting, one of our core values is being proactively thorough. We know that even well-managed books can conceal compliance issues — especially when vendors or tax rules change midstream. A recent client experience is the perfect example of how important it is to regularly review your filings and ensure your business is adapting to changes in real time.

A Change in Vendor Policy – and an Overlooked Detail

When this client joined True Balance, we performed our standard onboarding review, which includes a detailed look at prior tax filings. During that process, we noticed something that warranted a closer look: the client appeared to be remitting sales tax on certain transactions, even though those transactions had already had tax collected and remitted by the vendor on their behalf.

What had happened?

It turns out that the vendor had updated their policy, shifting from requiring clients to collect and remit sales tax themselves to handling it directly on their customers' behalf. This is a common change — especially with larger platforms or third-party marketplaces — but it can be easy to miss if you’re used to doing things a certain way.

And that’s exactly what happened. The filings were done with the best of intentions and based on prior practice, but the vendor's new process wasn’t fully accounted for in the sales tax returns.

How We Handled It

Once we identified the duplication, we immediately:

• Reviewed the vendor’s updated terms and transaction reports

• Cross-checked the reported sales with filed returns

• Prepared and submitted amended sales tax returns for the affected quarters

• Corresponded with the Department of Revenue to ensure proper handling

  
  

The outcome? The client will receive a $7,750.40 refund, including $240.90 in interest. A great win — and a strong reminder that change is always happening behind the scenes in business operations.

The Takeaway: Keep Tabs on Compliance, Even When Things Seem “Normal”

This situation is a valuable lesson in how easily compliance issues can occur — not from negligence, but simply from the natural evolution of vendor policies, tax rules, or system processes.

Here are a few points every business owner should keep in mind:

1. Vendor automation is helpful — but not infallible.

Just because a vendor says they'll handle sales tax doesn't mean you can stop checking. Their changes might not be clearly communicated, and your reporting methods may need adjusting.

2. Routine compliance reviews can surface hidden savings.

Our client didn’t know she had overpaid — and wouldn’t have known without a deeper look. That refund may have otherwise gone unnoticed.

3. It's not about fault — it's about awareness.

This wasn't about mistakes. It was about staying up-to-date in a landscape that changes more often than most people realize.

Final Thoughts

At True Balance Accounting, our goal is to be a second set of eyes you can trust — helping you catch what might get overlooked and giving you confidence that you’re staying compliant and cost-effective.

If you’ve had vendors change their tax handling, or you just want a health check on your filings, let’s connect. You might be surprised by what we find — in a good way.

Get peace of mind and your money’s worth.

📅 Book a Consultation | ✉️kim@truebalanceacctg.com