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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

  1. 1. Automating Your Sales Tax Compliance Requirements for AspDotNetStoreFront<br />Matthew Grattan <br />OEM-ISV Channel Director<br />
  2. 2. Taxable or Non-Taxable in NY?<br />
  3. 3. Taxable or Non-Taxable in NY?<br />
  4. 4. Taxable or Non-Taxable in CA?<br />
  5. 5. Download Adobe Acrobat 9 Pro Extended<br /><br />Taxable or Non-Taxable in CA?<br />
  6. 6. Taxable or Non-Taxable in CA?<br />Download Adobe Acrobat 9 Pro Extended<br /><br />
  7. 7. What is Nexus?<br />Challenges and Complexity of Sales Tax Compliance<br />Shortfalls of Manual Compliance Processes<br />‘Bullet-Proof’ Sales Tax Compliance with Avalara<br />Demo<br />Q & A Session <br />The Agenda<br />
  8. 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:<br />Salespeople<br />Agents or Distributors<br />Employees on Payroll <br />Training<br />Trade Show Attendance<br />Inventory / Warehousing <br />Servicing Tangible Personal Property<br />What is Nexus? <br />
  9. 9. Challenges of Sales & Use Tax Compliance<br />Sales Tax is a statutory requirement<br />Audit Penalty & Loss <br />100% non-revenue generating activity<br />Manual sales tax management:<br />Labor-intensive <br />Leads to inaccurate results<br />Costs $1,000s<br />Complexity<br />Compliance process – calculate, report, return, remit<br />15,000+ taxing jurisdictions<br />Thousands of changes to tax laws, including:<br />Jurisdictional rate changes<br />Tax holidays<br />Jurisdictions that levy new taxes/eliminate taxes<br />Jurisdictions that expand geographic boundaries<br />
  10. 10. A ZIP+4 or street segment:<br />May cross a county and/or municipality boundary<br />Are not assigned to all physical streets, just those which the post office delivers<br />Can change on a monthly basis<br />There are over 40,000,000 ZIP+4’s nationwide<br />There are over 600,000 monthly changes to the ZIP+4 file<br /> Rates tablesare only accurate 60% - 70% of the time nationwide<br />Why are Zip Codes Ineffective in Determining Tax Jurisdictions?<br />
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  16. 16. 7.85%<br />80111 Taxes Represented:<br />2.9% Colorado State<br />.25% Arapahoe County<br />1.0% Douglas County<br />3.5% Englewood City<br />3.0% Greenwood Village City<br />2.5% Centennial City<br />1.0% Regional Transport District<br />.10% Football District<br />.10% Science and Cultural District<br />4.35%<br />4.35%<br />6.85%<br />7.72%<br />7.35%<br />5.10%<br />
  17. 17. Product Taxability in States & Jurisdictions is not consistent throughout the United States<br />The following industries have varying taxability rules:<br />Software / Hardware <br />Digital Goods <br />Services<br />Medical device / equipment <br />Food / Beverage <br />Clothing / Apparel<br />School Related Products <br />And many other industries / products! <br />Understanding Product & Service Taxability Exceptions<br />
  18. 18. Manual Compliance Costs*All facts and figures from an independent study of 551 accounting and financial professionals in small to mid sized businesses<br />70% of businesses surveyed have been audited in the past 3 years<br />Average penalties: $34,000 per audit<br />Managing sales tax manually is costly<br />Under $1M revenue: 13.5% of sales tax dollars collected<br />$1M to $10M in revenue: 5.2% of sales tax dollar collected<br />Preparing Returns is costly as well<br />33% say preparing and remitting sales/use tax forms takes 24 full accounting days per year<br />
  19. 19. Managing Local Tax Tables<br />
  20. 20. Monthly Updates to Zip Files<br />Copyright © Avalara, Inc. All Rights Reserved.<br />
  21. 21. Burdensome & Audit Risk Prone:<br />Customers provide invalid certificates; difficult to follow-up w/customers<br />Inadequate process for reviewing certificate validity<br />Cannot track certificate expirations and requests<br />Billing errors occur due to inaccurate and incomplete cert data<br />Lack of reports for certificate exposure and analysis<br />Difficult to locate and provide certificates to auditors<br />Large, recurring audit assessments<br />Managing Exemption Certificates Manually? <br />
  22. 22. Avalara is Solving the ChallengeAvaTax is the fastest, easiest, most accurate and affordable way to calculate, report, return, and remit transactional tax<br />Simplifying Sales Tax Compliance through Automation<br />Outsource sales tax requirements<br />Save time & money<br />Reduce audit risk<br />Avalara is the Leader in Web-Based Sales Tax Solutions<br />Chosen by 10,000 + customers<br />Trusted provider for 350 million+ calculations annually <br />Processing over 25,000 returns per month <br />Remitting more than $16 billion in sale tax filings annually <br />Recommended by over 2,000 software application resellers, CPA’s, and business consultants<br />One of only 4 Certified Service Providers under the Streamlined Sales Tax (SST) Project <br />
  23. 23. Sampling of Avalara Clients<br />
  24. 24. Avalara Sales Tax Management Service to Achieve Compliance<br />
  25. 25. Automating Mgt of Exemption CertificatesAvaCert – EASY AS 1-2-3!<br />1. Lookup Valid Cert<br />2. Send Cert Request <br />3. Customer Electronically Submits Valid Cert<br /><ul><li>AvaCert’s online wizard helps to ensure cert validity
  26. 26. AvaTax transfers cert data and exempts relevant transactions automatically</li></li></ul><li>Demo<br />Copyright © Avalara, Inc. All Rights Reserved.<br />
  27. 27. Matthew Grattan | OEM-ISV Channel Director | avalara®direct: 206.826.4900 ext.1138<br />Questions - <br />Thank you for your time today<br />?<br />?<br />?<br />?<br />