Keeping up with Sales Tax Changes
Keeping track of changes based on industry can make sales and use tax compliance a daunting task. It doesn’t help that changes are usually more complex than they appear. Jurisdictional changes, new rates and taxability rules, and changed or expanded filing rules are just a few examples that your business may need to track. Every industry is affected by sales tax in a different way. Here are some examples below:
Media/Entertainment: The purchase and/or download of electronic media may/may not be taxable and may be associated with a different rate. Data analysis or processing is also taxable in a number of states and subscription selling can be tricky as well.
Life Sciences: There are federal medical device excise taxes that need to be applied, as well as taxation on nutraceuticals which varies from state to state.
Manufacturing/Distribution: Tracking thousands of SKU numbers that cross taxability rules or vary in taxability based on state. It is also struggle in figuring out what is taxable and what isn’t.
Also, if you are collecting sales tax in multiple states, the complexity only grows. With states short on cash, state and local governments are revising tax laws and hiring more auditors to increase revenue. What’s not taxable today could be taxable tomorrow. What’s taxable in one state may not be in another. Any given rate can change one week to the next, and it just gets exponentially more complicated depending on where you do business.
Automating the tax calculation and exempt certificate process can save time, money and effort. Put a solution in place that can make compliance as easy as pushing a button and scale with your business as you expand into new markets. Avalara’s AvaTax gives you that control to implement a quality workflow process in managing exemption certificates; a method of applying sales tax, when appropriate; and a flow-through process for filling out sales tax returns and remitting any sales and use tax liability.
Take the first step in protecting yourself by joining our webinar:
Say Goodbye to Frustrating Sales Tax Compliance: April 22nd, 10:00 am EST