Beating E-Commerce Sales Tax Speed Traps

© Copyright Avalara, 2012

SALES TAX COMPLIANCE THROUGH AUTOMATION

Beating E-commerce Sales Tax Speed Traps

Zeon Solutions and Avalara

Today’s speakers

David SmartOEM/ISV Account Manager

Avalara

Jenny HagemannBusiness Development Manager

Zeon Solutions

Zeon Solutions’ enterprise e-commerce solutions

We work with companies who use technology to accelerate revenue online -

10 years of both B2B and B2C expertise

Longstanding partnerships with industry leaders

• E-commerce platforms Magento and Znode

• Content management solutions with Sitecore

• Managed hosting with Rackspace

• Enterprise search from Endeca

• Transactional tax solutions from Avalara

• Software application development, including mobile apps• Search marketing: SEO, PPC and social media experts

Avalara’s transactional tax solutions

Avalara is the leader in web-based transactional tax -

• Chosen by more than 10,000 businesses• Calculating more than 3 million tax computations daily

• Processing more than 30,000 returns per month

• Remitting more than $14 billion in tax filings annually• Tracking more than 1.5 million sales tax exemption forms• Charter and Certified Service Provider for the Streamlined

Sales Tax Project.

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AvaTax – Magento’s Gold Certified Tax Solution

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Your Sales Tax Challenge

Calculation – For each purchase, tax needs to be calculated and needs to take into account:

– Should sales tax be applied based on Ship-To or Ship-From address

– Jurisdictions (State, County, City and Special Taxing Jurisdictions)

– Product specific taxability

– Amount of the unit price and total invoice

– Sales tax exempt entity status

– Reporting to support the compliance process

Returns – The tax accrued or collected needs to be remitted to each state or jurisdiction:

– AP departments typically have to make a payment to each state monthly or quarterly. AvaTax automates this.

AvaTax automates all of this for e-commerce, ERP, POS

Lower Sales Tax Revenues Make Enforcement a Priority

State Auditor New HiresNumber of State Audits

Sales Tax Revenue Collection

What our customers are telling us….

Accurate sales tax calculations are important

Sub-second performance is necessary for good customer experience

They don’t want the pain of managing sales tax rates and rules

OOTB reporting and real-time data accessibility is necessary to streamline the compliance process

Looking for risk reduction associated with audits

Sales tax compliance is strategic to outsource

What Does It Take To Comply in Over 11,000 Tax Jurisdictions?

Geo-location, not zip codes

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Your options

Onsite Solution (Legacy)• Requires maintenance, support, monthly updates• May not easily scale with business needs• High integration costs and long implementation timeframes• Slow API; not well suited for high transaction e-commerce

The “Afterthought” Solution• Usually integrated with other systems (payment, logistics)• Provides calculation based on zip code-based tax rates• No reporting capabilities• No product taxability capabilities• Support is challenging

Or…

End-to-End Compliance

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Multi-Channel Tax Compliance

When we make sense…

1. Complex or multi-state, global VAT requirement

2. Product taxability concerns

3. Are multi-channel

You have… Specifics…

1. Any of 17 complex tax states, or with 2 or 3 locations and/or global

2. Clothing and apparel, software, digital goods, services, etc.

3. AvaTax integrated with over 200 POS, ERP and commerce systems

Questions?

For more information…

David Smart+1 206-780-7000 ext. 1150

[email protected]

Jenny Hagemann+1 414-847-1145

[email protected]