Sales and Use Tax Compliance: Filing Returns with Ease

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3. Today’s Presenters
Mary Orefice|
Account Executive - Compliance
Ian Dyer |
Sales Engineer
Troy Simpson |
Channel Sales Manager

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Ecosystem
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6. Sales and Use Tax Compliance:
Filing Returns with Ease

7. Agenda
 Who is Vertex?
 A Review of the Sales and Use Tax Landscape
 Basic Nexus
 Potential Audit Flags to Avoid
 Filing Accurate Tax Calculations and Returns

8. “The Most Trusted Name in Tax” – Vertex Inc.
Founded in 1978
More than 10,000 customers
90%+ renewal rate
Legendary customer service – We are “tax people”!!
200+ tax professionals providing real-time rule and rate updates
Best calculation logic on the market
Vertex Cloud has been “RIGHT-SIZED” for your business

9. “The Most Trusted Name in Tax” - Vertex Inc.

10. Landscape of the Market Today

11. Navigating Sales and Use Tax
 Jurisdictions are looking for more revenue
• Changes to legislation
• Hiring more auditors
 Companies have limited sales tax expertise and states are
increasing complexity
 No value-add if correct – just penalties when incorrect
 Vacancy in market for qualified, proven, capable tax solution

12. Today’s Landscape
0%
10%
20%
30%
40%
50%
60%
70%
AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY
Sales tax as percentage of state revenue*

13. Today’s Landscape
Tax is Complex
 Different rates for each jurisdiction
 Rates constantly changing
 Product taxability
 Exemptions (product, customer)
Limited Sales Tax Expertise
 Compliance is key to avoid expensive audits and penalties
States Searching for Revenue
 Looking for new revenue sources
 Hiring more auditors
 Audit protection and compliance are more important than ever
 No value add if correct – just penalties when incorrect

14. Sales and Use Tax Updates - 2016

15. Today’s Landscape
Potential Market
10%
Automated Barriers to entry:
• High upfront costs
• Complex set up
• Expensive solutions
Vertex Cloud’s solution:
• Ease of implementation
• Flexible pricing
90%
Manual Process

16. Do you know where
you have nexus?

17. Nexus – The Basics
Nexus is a physical presence and can include a number of different situations such as
warehouses, stores, affiliates, or even salespeople.
Some of the more common nexus criteria include:
 A physical presence/location, such as a store, office, or warehouse, just to name a few
 Solicitation by company sales representatives
 Company-owned vehicles delivering tangible personal property into the jurisdiction
 Company-owned tangible personal property, such as capital equipment or inventory, stored or
located in the jurisdiction
 Out of state seller with no in-state physical presence but regular in-state activities such as training
classes held in the jurisdiction
 Tangible personal property leased or rented to someone located in the jurisdiction
 Repair or maintenance of tangible personal property located in the jurisdiction
*What constitutes nexus varies by state and jurisdiction so it is important to seek the advice of your trusted tax advisor.

18. Sales Tax Compliance Checklist
1. Know where you have nexus
2. Maintain sales tax and business licenses
3. Understand product taxability rules
4. Recognize the difference between origin vs. destination based sales tax rules
5. Collect and maintain exemption certificates
6. Charge proper tax type
7. Know the risk on sales and use tax returns
8. Understand audit triggers

19. Potential Audit Triggers
 A significant percentage of exempt sales
 Late returns filing
 Sudden significant changes in the amounts reported
on returns
 Incorrect math

20. Vertex Cloud Features

21. Calculations and Returns in One Solution

22. Exemption Certificate Management
Part of the tax calculation
Bulk or individual upload
Reports (expiration dates etc.)

23. Use Tax
Calculate and report use tax, including:
Accruals
Asset and goods management
Inventory removal
Purchase orders
Flows through to same signature-ready return
Included at NO EXTRA COST

24. Tax Service Partners
We partner with third party tax services partners to help
navigate the following areas:

25. Flexible Pricing
 No more estimating annual transaction
volume and paying a year in advance
 Tiered pricing system
 Optional long-term contracts – 1 or 3-
year contracts

26. Signature Ready Returns
Tax from invoiced transactions flows thru to appropriate return
Use tax info flows thru to same return
Just print and sign
Filing calendar to keep you on track and on time
Included at NO EXTRA COST!
Or…we can file and remit on your behalf (Premium Service)

27. Automated Returns Offering
Provides an automated vehicle to produce returns out of any
system. Requires no ERP integration.
 Upload a file
 Signature ready PDF returns
 Filing and remittance

28. Automated Returns Functionality
By providing the returns-only functionality, Vertex Cloud has made it
possible for tax professionals to:
 Save time
 Reduce effort
 Improve accuracy and compliance
 Analyze data and determine if calculation are correct

29. Vertex Cloud Offers
 Filing calendar
 Process credits and adjustments
 Returns payment management
 Tax notice management
 Prepayment filing, management, and tracking
 Reconciliation and payment reports

30. Demo of Vertex Cloud

31. Q & A
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Thank You For Attending!
Mary Orefice|
Account Executive – Compliance
Phone: : (804) 298-3810
morefice@netatwork.com