Sales and use tax compliance is difficult to manage, especially if your process is manual. Join Avalara, our partner in sales tax compliance as we walk you thru the best ways to quickly and reliably determine sales tax, filing returns and efficiently manage exempt sales within Oracle. Participants will learn:
• How to protect their business from audits
• How to save time and money on sales tax compliance
• Why zip codes mean zip when it comes to sales tax
• Nexus: Where do you currently have a physical presence
• Product and Service Taxability: How are your products and services taxed
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Sales Tax Compliance within Oracle E-Business Suite / JD Edwards / PeopleSoft
1. Sales Tax Compliance within Oracle E-Business Suite / JD
Edwards / PeopleSoft
Christine Martin
Avalara
2. Christine Martin
Christine Martin has spent 25-plus years working in the sales
and use tax space. She started her career at Marriott
headquarters in Bethesda, Maryland and has been a tax
manager at a large telephone company and Fortune 1000
paper manufacturer as well as Director of Compliance for the
first sales tax compliance outsourcer for telecommunications
tax.
Christine has been a frequent presenter at several industry
events such as TEI, ACT, and Telestrategies. Currently she is a
Sales Engineer with Avalara, the leader in sales tax
management.
3. Who is Avalara?
• A Market Leader for a Decade
• Currently Over 1000 Employees (growing rapidly)
• Offices in Seattle, SoCal, Raleigh, Virginia, Harrisburg, Detroit, Houston,
Green Bay, Atlanta, New Jersey
• 410% Growth in The Last 4 Years Alone
• 240+ Trade shows in 2014 – We Are Everywhere
• Huge Customer Satisfaction – Industry Low Churn
4. The State of Our States
States are still recovering from the Great Recession
In 2013, 31 states projected budget deficits totaling $55 billion
NRF estimates $24 billion in sales taxes goes uncollected on the
Internet
Therefore
As tax-collecting agents of the State(s), they are looking to your
business to find more money
This increased focus creates compliance risk for you
6. Why Sales Tax Matters to States
When general sales tax
and selective sales tax
are combined, sales tax
makes up 47% of total
state revenue
Source: US Census Bureau, 2012 Census of Governments: Finance – Survey of State Government Tax Collections at www.census.gov/govs/statetax
Total State Government Tax
Collections by Category
Other taxes 3.9%
Corporation net
income taxes 5.3%
Total license taxes
6.8%
Total selective
sales taxes 16.6%
General sales and
gross receipts
taxes 30.5%
Property
taxes 1.6%
Individual
income
taxes 35.3%
7. What Makes Sales Tax So Complex
152M mailing addresses associated with taxing jurisdiction borders.
24,750 sales and use tax rates.
9,937,125 rules to determine the taxability of the product/service.
247,500 rules to determine the taxability of the buyer/seller.
CALCULATIONCOMPONENT
Geocoding
Situses
Rating
Exemptions based on nature of
what is sold
Exemptions based on nature of
the purchaser and how the
purchase will be used.
12,375 rules to determine which jurisdictions’ tax rates and types apply.
PLUS: 23+ sales tax holidays
Thousands of changes each year
State-provided info that’s often missing, misleading, or wrong
Sourcing rules that differ
Complicated nexus rules
and this just covers North America!!!
10. Cost of Manual Compliance
Source: Wakefield Research, July 2013
Average total cost for
businesses to manage a sales
tax audit
Average time spent filing sales
tax returns and remitting
payment
11 hours per week
Percentage of businesses that
believe a sales tax auditor would
find a mistake
11. Reduce Your Risk
Do a nexus study
Stay up-to-date with rate,
rule, and boundary changes
Report consumers’ use tax
Be compliant from day one
Automate with technology
An understanding of your filing
requirements
Calculations that are rooftop
accurate
Product taxability coverage
Detailed sales records
A process for managing exemption
certificates
You should: Make sure you have:
