Thanks to everyone that joined us! Your business should be focused on generating profits and cutting costs, not managing sales tax. Consider that calculating, filing and remitting sales and use tax is a pass through activity with no direct benefits to your bottom line. Any effort spent on sales tax compliance activities is 100% non-revenue generating. To overcome this challenge, Avalara’s Avatax solution provides Kentico customers a complete sales tax compliance solution – from the point of sale to filing returns – so you can focus on what’s important, growing your business! During this session, we covered: * The Challenges and Complexities of Sales Tax Compliance * Using Technology to deliver the Sales tax Automation and Compliance your business needs * Reducing your Risk and Exposure to potential costly Audits * Automating your Sales Tax Calculation and filing requirements

1. Automating Your Sales Tax Compliance Requirements with Kentico CMS Matthew Grattan OEM-ISV Channel Director

2. Challenges and Complexity of Sales Tax Compliance What is Nexus? Automated Sales Tax Compliance for Kentico Demo Q & A Session The Agenda

3. Challenges of Sales & Use Tax Compliance 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

4. 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?

10. 7.85% 80111 Taxes Represented: 2.9% Colorado State .25% Arapahoe County 1.0% Douglas County 3.5% Englewood City 3.0% Greenwood Village City 2.5% Centennial City 1.0% Regional Transport District .10% Football District .10% Science and Cultural District 4.35% 4.35% 6.85% 7.72% 7.35% 5.10%

11. Taxable or Non-Taxable in NY?

12. Taxable or Non-Taxable in NY?

13. Taxable or Non-Taxable in CA?

14. Download Adobe Acrobat 9 Pro Extended https://www.adobe.com/downloads/ Taxable or Non-Taxable in CA?

15. Taxable or Non-Taxable in CA? Download Adobe Acrobat 9 Pro Extended https://www.adobe.com/downloads/

16. 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

17. 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?

18. Avalara is Solving the ChallengeAvaTax is the fastest, easiest, most accurate and affordable way to calculate, report, return, and remit transactional tax 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

19. Sampling of Avalara Clients

20. AvaTaxSales Tax Solution

21. Demo Copyright © Avalara, Inc. All Rights Reserved.

22. Matthew Grattan | OEM-ISV Channel Director | avalara®direct: 206.826.4900 ext.1138 matthew.grattan@avalara.com Questions - Thank you for your time today ? ? ? ?