- Utility construction projects face elevated sales and use tax risks due to multi-jurisdictional activity, long timelines, complex procurement, and high capital spend.
- Common pitfalls include tax inaccuracies in construction contracts, confusion over contractor vs. owner tax responsibility, missed exemptions and incentives, jurisdictional sourcing errors, and poor documentation.
- These issues can lead to significant financial exposure, overpayment, under-accrual, and missed recovery opportunities, often only discovered during audits or after project completion.
- Effective tax management requires coordination across procurement, tax, accounts payable, and project management throughout the project lifecycle.
Source: dmainc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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