Because our Tax solution is a transactional based pricing model, it is cost effective for businesses of all sizes, from start-up to major enterprises. This is what I call a “credibility slide” – Some of these companies do millions of transactions a year with us.I also want you to know that CFO’s & Controllers of major corporations, with significant sales tax exposure, have evaluated AvaTax and determined it’s the best way to calculate & remit sales tax.Here’s the coolest thing – the demo that I’m about to show you, is the exact same tax engine that companies such as Dupont, Borders, and Xerox are using today –
Automating Your Sales Tax Compliance Requirements for AspDotNetStoreFront Matthew Grattan OEM-ISV Channel Director
Download Adobe Acrobat 9 Pro Extended https://www.adobe.com/downloads/ Taxable or Non-Taxable in CA?
Taxable or Non-Taxable in CA? Download Adobe Acrobat 9 Pro Extended https://www.adobe.com/downloads/
What is Nexus? Challenges and Complexity of Sales Tax Compliance Shortfalls of Manual Compliance Processes ‘Bullet-Proof’ Sales Tax Compliance with Avalara Demo Q & A Session The Agenda
States define Nexus as a ‘tangible physical presence’ which creates the requirement to collect & remit Sales Tax. Laws surrounding what constitutes Nexus vary state-to-state. Some examples include: Salespeople Agents or Distributors Employees on Payroll Training Trade Show Attendance Inventory / Warehousing Servicing Tangible Personal Property What is Nexus?
Challenges of Sales & Use Tax Compliance Sales Tax is a statutory requirement Audit Penalty & Loss 100% non-revenue generating activity Manual sales tax management: Labor-intensive Leads to inaccurate results Costs $1,000s Complexity Compliance process – calculate, report, return, remit 15,000+ taxing jurisdictions Thousands of changes to tax laws, including: Jurisdictional rate changes Tax holidays Jurisdictions that levy new taxes/eliminate taxes Jurisdictions that expand geographic boundaries
A ZIP+4 or street segment: May cross a county and/or municipality boundary Are not assigned to all physical streets, just those which the post office delivers Can change on a monthly basis There are over 40,000,000 ZIP+4’s nationwide There are over 600,000 monthly changes to the ZIP+4 file Rates tablesare only accurate 60% - 70% of the time nationwide Why are Zip Codes Ineffective in Determining Tax Jurisdictions?
7.85% 80111 Taxes Represented: 2.9% Colorado State .25% Arapahoe County 1.0% Douglas County 3.5% Englewood City 3.0% Greenwood Village City 2.5% Centennial City 1.0% Regional Transport District .10% Football District .10% Science and Cultural District 4.35% 4.35% 6.85% 7.72% 7.35% 5.10%
Product Taxability in States & Jurisdictions is not consistent throughout the United States The following industries have varying taxability rules: Software / Hardware Digital Goods Services Medical device / equipment Food / Beverage Clothing / Apparel School Related Products And many other industries / products! Understanding Product & Service Taxability Exceptions
Manual Compliance Costs*All facts and figures from an independent study of 551 accounting and financial professionals in small to mid sized businesses 70% of businesses surveyed have been audited in the past 3 years Average penalties: $34,000 per audit Managing sales tax manually is costly Under $1M revenue: 13.5% of sales tax dollars collected $1M to $10M in revenue: 5.2% of sales tax dollar collected Preparing Returns is costly as well 33% say preparing and remitting sales/use tax forms takes 24 full accounting days per year
Burdensome & Audit Risk Prone: Customers provide invalid certificates; difficult to follow-up w/customers Inadequate process for reviewing certificate validity Cannot track certificate expirations and requests Billing errors occur due to inaccurate and incomplete cert data Lack of reports for certificate exposure and analysis Difficult to locate and provide certificates to auditors Large, recurring audit assessments Managing Exemption Certificates Manually?
Avalara is Solving the ChallengeAvaTax is the fastest, easiest, most accurate and affordable way to calculate, report, return, and remit transactional tax Simplifying Sales Tax Compliance through Automation Outsource sales tax requirements Save time & money Reduce audit risk Avalara is the Leader in Web-Based Sales Tax Solutions Chosen by 10,000 + customers Trusted provider for 350 million+ calculations annually Processing over 25,000 returns per month Remitting more than $16 billion in sale tax filings annually Recommended by over 2,000 software application resellers, CPA’s, and business consultants One of only 4 Certified Service Providers under the Streamlined Sales Tax (SST) Project