Making sales tax less taxing.

Automating Your Sales Tax Compliance Requirements with Kentico CMS

Matthew GrattanOEM-ISV Channel Director

Challenges and Complexity of Sales Tax Compliance

What is Nexus?

Automated Sales Tax Compliance for Kentico

Demo

Q & A Session

The Agenda

Sales Tax is a statutory requirement» Manual, labor-intensive and prone to error» 100% non-revenue generating» Audit Penalty & Loss

Complexity» Compliance process – calculate, report, return, remit» 15,000+ taxing jurisdictions in the US» Sourcing Rules – origin, destination or mixed?» Varying Product Taxability Rules» Over 5,500 changes to tax laws processed in FY2011:

• Jurisdictional rate changes• Tax holidays• Jurisdictions that levy new taxes/eliminate taxes• Jurisdictions that expand geographic boundaries

Challenges of Sales & Use Tax Compliance

A ZIP+4:

May cross a county and/or municipality boundary

Are not assigned to all physical streets, just those which the post office delivers

Can change on a monthly basis

There are over 40,000,000 ZIP+4’s nationwide

There are over 600,000 monthly changes to the ZIP+4 file

Rates tables are only accurate 70% nationwide

Why are Zip Codes Ineffective in Determining Tax Jurisdictions?

7.85%

4.35%

4.35%

6.85%

7.72%

7.35%

5.10%

80111 Taxes Represented:2.9% Colorado State.25% Arapahoe County1.0% Douglas County3.5% Englewood City3.0% Greenwood Village City2.5% Centennial City1.0% Regional Transport District.10% Football District.10% Science and Cultural District

Taxable or Non-Taxable in NY?

Taxable or Non-Taxable in NY?

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/

Product Taxability in States & Jurisdictions is not consistent throughout the United States» The following industries have varying taxability rules:

• Software / Hardware • Digital Goods • Services• Medical device / equipment • Food / Beverage • Clothing / Apparel• School Related Products • And many other industries / products!

Understanding Product & Service Taxability Exceptions

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:

Salespeople

Agents or Distributors

Employees on Payroll

Training

Trade Show Attendance

Inventory / Warehousing

Servicing Tangible Personal Property

What is Nexus?

Simplifying Sales Tax Compliance through Automation» Outsource sales tax requirements» Save time & money» Reduce audit risk

Avalara is the Leader in Web-Based Sales Tax Solutions» Chosen by 10,000 + customers» Trusted provider for 350 million+ calculations annually » Processing over 25,000 returns per month » Remitting more than $16 billion in sale tax filings annually » Recommended by over 2,000 software application

resellers, CPA’s, and business consultants» One of only 4 Certified Service Providers under the

Streamlined Sales Tax (SST) Project

Avalara is Solving the Challenge AvaTax is the fastest, easiest, most accurate and affordable way to calculate, report, return, and remit transactional tax

Sampling of Avalara Clients

AvaTax Sales Tax Solution

Demo

Copyright © Avalara, Inc. All Rights Reserved.

Matthew Grattan | OEM-ISV Channel Director | avalara® direct: 206.826.4900 ext.1138 matthew.grattan@avalara.com

Questions -

Thank you for your time today