Presented by: Dan Sullivan, CEO Assisted by: Scott H. Walters, Vice President, Research &...
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Transcript of Presented by: Dan Sullivan, CEO Assisted by: Scott H. Walters, Vice President, Research &...
Presented by:
Dan Sullivan, CEOAssisted by:
Scott H. Walters, Vice President, Research & DevelopmentJon W. Abolins, Director, Tax Department
Transaction Tax Serveras an eCommerce
Tax Solution
TAXWARE International’s
Adapting Tax Technology
• Sales/Use Tax & WORLDTAX Systems
¤ Address driven (privacy)
¤ Customizable by Merchant
¤ Handles exempt sales by product or customer exemption
¤ Creates Audit trails
¤ Generates Tax Forms or records for electronic transmission
• The Transaction Tax Server (TTS)
• The “no fault” concept and TTS
Existing TAXWARE SystemsThe SALES/USE Tax System
PRODUCTTAX
RULES
TAXRATES
ReMIT(Compliance)
AuditFile
STEP(CustomerExemption)
TAXCALCULATION
(S/U Tax)(WorldTax)
UNIVERSALTAX LINK
(Data)
MERCHANTPROCESSING
VERAZIP(Address
Verify)
MERCHANTDATA(Nexus,
Address, Etc.)
Existing TAXWARE SystemsThe ReMIT System
• Platform independent
• Supports all
TAXWARE systems
• Internet-ready for
eCommerce reporting
Transaction Tax Server
MerchantData
(Nexus, ID, etc.)
ProductTax Rates
StandardTax Rates
Tax Data
AddressVerification
Transaction Data
Buyer
Merchant
TAXWARE CalculationEngine
TAXWARE Transaction
Server
The Server Concept allows tax processing from a variety of sources, using either batch or real timeprocessing.
Large scalecomputerSystems
Laptops
Handhelds
Desktops
Transaction Tax Server
MerchantData
(Nexus, ID, etc.)
ProductTax Rates
StandardTax Rates
AddressVerification
“NOFault!”Tax Data & Tax $$
TaxAuthority
Tax Data & Purchase $$
Merchant
TAXWARE CalculationEngine
Transaction Data
Buyer
Merchant
TaxAuthorityExempt Certificate
WarehouseCertificate Updates
TAXWARE CalculationEngine
Transaction Tax Server
ProductTax Rates
StandardTax Rates
AddressVerification
MerchantData
Tax Authoritieswould make
Exempt CertificateFiles available to the Transaction Server
Tax Server Tax Authority
Using TAXWARE’s ReMIT as a “Data Highway”
TAXWARETax Calc.
Audit File
TAXWARE’s ReMIT
SummaryTAXWARE’s
ReMIT
InternetTransmission
Summary
Other Tax Sources
Audit File
Mapping Software
Audit File
Merchant
TTS Benefits to the Merchant • The Merchants would no longer have to;
-monitor tax rate changes-monitor tax law changes-maintain in-house tax Systems
• Transaction based fees - even the smallest of Merchants could afford it
If “no fault” is implementedBenefits to the Merchant• No longer required to collect taxes• No longer required to complete & submit complicated tax forms & payments• Fewer or no time consuming audits
“No Fault” Benefits to The Tax Authorities
• No need to change existing tax laws or rules• Tax Authorities receive revenues & data at the time of the transaction• Tax Authorities can supply data directly to the serverand monitor the application of rates & laws• Tax Authorities can continue to use existing back officeSystems - the cost to convert is relatively minor• Audit overhead is reduced - Merchants are offered a“fault free” option for using the TTS• The TTS Concept along with “No Fault” offers the Tax Authorities an opportunity to simplify taxes
TaxAuthority
TaxAuthorityExempt Certificate
WarehouseCertificate Updates
TAXWARE CalculationEngine
Merchant
Transaction Tax Server
MerchantData
(Nexus, ID, etc.)
ProductTax Rates
StandardTax Rates
AddressVerification
Transaction Data
Tax Data & Tax $$
Tax Data & Merchandise $$
THEEND