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How the sales and use tax game is changing and how tax compliance through automation can help

December 6, 2018 By Sheralyn Felix

Guest blog post by Sheralyn Felix, Partner Marketing Manager, Avalara

With the end of the year quickly approaching, it’s time to evaluate and re-evaluate where we’ve been and where we’re going for 2019.

Manufacturers and distributors face shifting sales and use tax regulations and obligations on in-state and out-of-state tax when it comes to equipment, parts, drop shipping, consumer direct sales, installation and repair services, and direct pay permits. This complexity adds up to compliance cost and risk. And now, we must consider how the sales and use tax game is changing when it comes to economic nexus.

What is economic nexus?

Economic nexus is defined as having economic activity in a state, or by having income from sales to customers in that state. Sales tax nexus is no longer solely based on having a physical presence in a state. In June, the Supreme Court ruled in South Dakota v. Wayfair Inc. that the state is now allowed to collect sales tax from remote sellers on remote transactions, if specific amounts and thresholds are met. This is a giant step for remote retail sales tax and ecommerce that affects more states every day.

All manufacturers and distributors, selling B2B or B2C, are subject to consumer use tax on their purchases. Manual approaches to self-assessment of consumer use tax are time-consuming and error-prone, leading to both negative margin impact and audit risk. Avalara has helped many Infor customers automate tax compliance, increase efficiency, and lower audit risk. Avalara and Infor handle growing tax complexity with technology instead of human resources, enabling you to focus on strategic projects.

To learn more about how the sales and use tax game is changing, the impact of South Dakota v. Wayfair, Inc. on your business, and how Avalara and Infor can help, join our joint webinar on December 12, 2018, at 1 pm EST. You’ll hear about:

  • The South Dakota v. Wayfair ruling
  • Accuracy of tax calculations
  • Proper exemption certificate management
  • And more!

Register now!

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