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Automating Your Sales Tax Compliance Requirements for ASPDNSF - Matthew Grattan, Avalara
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Automating Your Sales Tax Compliance Requirements for ASPDNSF - Matthew Grattan, Avalara

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  • 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 –
  • Transcript

    • 1. Automating Your Sales Tax Compliance Requirements for AspDotNetStoreFront
      Matthew Grattan
      OEM-ISV Channel Director
    • 2. Taxable or Non-Taxable in NY?
    • 3. Taxable or Non-Taxable in NY?
    • 4. Taxable or Non-Taxable in CA?
    • 5. Download Adobe Acrobat 9 Pro Extended
      https://www.adobe.com/downloads/
      Taxable or Non-Taxable in CA?
    • 6. Taxable or Non-Taxable in CA?
      Download Adobe Acrobat 9 Pro Extended
      https://www.adobe.com/downloads/
    • 7. 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
    • 8. 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?
    • 9. 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
    • 10. 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?
    • 11.
    • 12.
    • 13.
    • 14.
    • 15.
    • 16. 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%
    • 17. 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
    • 18. 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
    • 19. Managing Local Tax Tables
    • 20. Monthly Updates to Zip Files
      Copyright © Avalara, Inc. All Rights Reserved.
    • 21. 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?
    • 22. 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
    • 23. Sampling of Avalara Clients
    • 24. Avalara Sales Tax Management Service to Achieve Compliance
    • 25. Automating Mgt of Exemption CertificatesAvaCert – EASY AS 1-2-3!
      1. Lookup Valid Cert
      2. Send Cert Request
      3. Customer Electronically Submits Valid Cert
      • AvaCert’s online wizard helps to ensure cert validity
      • 26. AvaTax transfers cert data and exempts relevant transactions automatically
    • Demo
      Copyright © Avalara, Inc. All Rights Reserved.
    • 27. Matthew Grattan | OEM-ISV Channel Director | avalara®direct: 206.826.4900 ext.1138 matthew.grattan@avalara.com
      Questions -
      Thank you for your time today
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