Beating E-Commerce Sales Tax Speed Traps
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© Copyright Avalara, 2012
SALES TAX COMPLIANCE THROUGH AUTOMATION
Beating E-commerce Sales Tax Speed Traps
Zeon Solutions and Avalara
Today’s speakers
David SmartOEM/ISV Account Manager
Avalara
Jenny HagemannBusiness 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.
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AvaTax – Magento’s Gold Certified Tax Solution
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
State Auditor New HiresNumber of State Audits
Sales Tax Revenue Collection
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
Download Adobe Acrobat 9 Pro Extended
https://www.adobe.com/downloads/
Taxable or Non-Taxable in CA?
Taxable or Non-Taxable in CA?
Taxable or Non-Taxable in CA?
Download Adobe Acrobat 9 Pro Extendedhttps://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
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Multi-Channel Tax Compliance
When we make sense…
1. Complex or multi-state, global VAT requirement
2. Product taxability concerns
3. Are multi-channel
You have… Specifics…
1. Any of 17 complex tax states, or with 2 or 3 locations and/or global
2. Clothing and apparel, software, digital goods, services, etc.
3. AvaTax integrated with over 200 POS, ERP and commerce systems
Questions?
For more information…
David Smart+1 206-780-7000 ext. 1150
Jenny Hagemann+1 414-847-1145