Beating E-Commerce Sales Tax Speed Traps
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Beating E-Commerce Sales Tax Speed Traps

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Zeon Solutions and industry leader Avalara help companies who want on-demand sales tax software, so tax calculations happen in real-time as orders are placed and tax returns are filed. We ...

Zeon Solutions and industry leader Avalara help companies who want on-demand sales tax software, so tax calculations happen in real-time as orders are placed and tax returns are filed. We automatically update with the most accurate rate and boundary changes so you can concentrate on your e-commerce business. These solutions have been designed and tested to work with the most popular e-commerce platforms including Magento and Znode.

In this informational webinar, topics covered include:
• Understand and prepare for state requirements for sales tax compliance
• Accurately manage sales tax in your own applications
• Avoid negative audits and save time and money on tax administration

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  • 10,000 customersProcessing nearly 1 billion calculations per year across 4 countinentsFiling more 30,000 returns per month
  • California hiring 100 new auditors to focus on internet sales tax collection - 2012Pennsylvania – 2012: targeting eCommerce providers: “”If companies with nexus blatantly disregard the tax bulletin and their obligations to begin collecting sales tax, the department has the statutory authority to look back at least three years for audit and assessment purposes.””Vermont, Idaho, Colorado and Oklahoma adding tax auditors - 2012
  • Avg cost of audit for small biz (including penalties) $48,456 (according to aberdeen)
  • 100% non-revenue generating activityManual sales tax management is less than optimalIt’s labor-intensive to update rate tablesFraught with inaccurate results (zip codes don’t equal tax jurisdictions)Expensive in long-term when audits are includedNeed to track 11,000 unique tax jurisdictions & thousands of annual changes including:Jurisdictional rate changesProduct and services exceptions & exemptionsJurisdictions that levy new taxes or eliminate taxesJurisdictions that expand geographic boundaries
  • speed impacts customer experience

Beating E-Commerce Sales Tax Speed Traps Beating E-Commerce Sales Tax Speed Traps Presentation Transcript

  • Beating E-commerceSales Tax Speed TrapsZeon Solutions and AvalaraSALES TAX COMPLIANCE THROUGH AUTOMATION © Copyright Avalara, 2012
  • Today’s speakers David Smart OEM/ISV Account Manager Avalara Jenny Hagemann Business Development Manager Zeon Solutions
  • Zeon Solutions’ enterprise e-commerce solutions We work with companies who use technology to accelerate revenue online - 10 years of both B2B and B2C expertise Longstanding partnerships with industry leaders • E-commerce platforms Magento and Znode • Content management solutions with Sitecore • Managed hosting with Rackspace • Enterprise search from Endeca • Transactional tax solutions from Avalara • Software application development, including mobile apps • Search marketing: SEO, PPC and social media experts
  • Avalara’s transactional tax solutions Avalara is the leader in web-based transactional tax - • Chosen by more than 10,000 businesses • Calculating more than 3 million tax computations daily • Processing more than 30,000 returns per month • Remitting more than $14 billion in tax filings annually • Tracking more than 1.5 million sales tax exemption forms • Charter and Certified Service Provider for the Streamlined Sales Tax Project.
  • AvaTax – Magento’s Gold Certified Tax Solution 5
  • Your Sales Tax Challenge Calculation – For each purchase, tax needs to be calculated and needs to take into account: – Should sales tax be applied based on Ship-To or Ship-From address – Jurisdictions (State, County, City and Special Taxing Jurisdictions) – Product specific taxability – Amount of the unit price and total invoice – Sales tax exempt entity status – Reporting to support the compliance process Returns – The tax accrued or collected needs to be remitted to each state or jurisdiction: – AP departments typically have to make a payment to each state monthly or quarterly. AvaTax automates this. AvaTax automates all of this for e-commerce, ERP, POS
  • Lower Sales Tax Revenues Make Enforcement a Priority
  • What our customers are telling us…. Accurate sales tax calculations are important Sub-second performance is necessary for good customer experience They don’t want the pain of managing sales tax rates and rules OOTB reporting and real-time data accessibility is necessary to streamline the compliance process Looking for risk reduction associated with audits Sales tax compliance is strategic to outsource
  • What Does It Take To Comply in Over 11,000 Tax Jurisdictions?
  • Geo-location, not zip codes
  • Taxable or Non-Taxable in CA? 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/
  • Your options Onsite Solution (Legacy) • Requires maintenance, support, monthly updates • May not easily scale with business needs • High integration costs and long implementation timeframes • Slow API; not well suited for high transaction e-commerce The “Afterthought” Solution • Usually integrated with other systems (payment, logistics) • Provides calculation based on zip code-based tax rates • No reporting capabilities • No product taxability capabilities • Support is challenging Or…
  • End-to-End Compliance
  • Multi-Channel Tax Compliance 17
  • When we make sense… You have… Specifics… 1. Complex or multi-state, 1. Any of 17 complex tax global VAT requirement states, or with 2 or 3 locations and/or global 2. Product taxability 2. Clothing and apparel, concerns software, digital goods, services, etc. 3. Are multi-channel 3. AvaTax integrated with over 200 POS, ERP and commerce systems
  • Questions?
  • For more information… David Smart +1 206-780-7000 ext. 1150 David.smart@avalara.com Jenny Hagemann +1 414-847-1145Jenny.hagemann@zeonsolutions.com