Automating Sales Tax for
Microsoft Dynamics GP
Presented by:
Making sales tax less taxing.
1
Agenda
1.
2.
3.
4.
5.
Challenges of Sales Tax Compliance
Avalara AvaTax Solution Overview
Demonstration of Avalara AvaTax
Customer Experience
Q&A
Making sales tax less taxing.
2
Sales and use tax compliance
52% of accounting professionals agree:
completing a marathon would be easier to accomplish
than understanding sales tax compliance laws.
Source: Wakefield Research 2013
Making sales tax less taxing.
Where do States turn for tax revenue?
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%
Property
taxes 1.6%
Individual
income
taxes 35.3%
When general sales
tax and selective
sales tax are
combined, sales tax
makes up 47% of
total state revenue
General sales
and gross
receipts taxes
30.5%
Source: US Census Bureau, 2012 Census of Governments: Finance – Survey of State Government Tax Collections at www.census.gov/govs/statetax
Making sales tax less taxing.
100,000 + distinct taxability rules
Destination
bas
Tax Holidays
Nexus Hybrid
rules sourcing
State-provided
info
ofte
Zip
codes
don’t
Origin
Exempt
missing,
misleading,
o
match
tax
Thousands
of Tax
changes
Sales
is
Hard.
based
Organizationsjurisdictions
each year
E-commerce
ru
Home Rule States
Sourcing
Exempt
Products
14,700+ distinct tax
rules
Situs
jurisdictions in North America
Making sales tax less taxing.
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
Making sales tax less taxing.
States finding more sales tax revenue
by broadening definitions of nexus
 Remote sellers can no longer assume that Quill v. North Dakota
means they don’t have to collect sales tax
 Nexus-creating activities (examples):
̶
̶
Independent agents
Remote sales force
Affiliate Nexus
Trade show participation
̶
̶
 “Amazon Laws”
̶
̶
Cyber Monday, 2013: SCOTUS leaves NY click-through affiliate law in place
11 States have already passed Amazon Laws
Making sales tax less taxing.
Accuracy is EVERYTHING!
• Sales tax is a complex statutory requirement
–
–
–
–
It’s an involved process – calculate, report, return, remit
11,000+ taxing jurisdictions
100,000+ distinct taxability rules
Thousands of changes to rates, rules and boundaries annually
• Manual sales tax management:
– It’s labor-intensive and costly
– Leads to inaccurate results
– 100% non-revenue generating activity
Making sales tax less taxing.
8
Manual sales tax management is timeconsuming, risk prone, and expensive
11 hours per week
Average time spent filing
sales tax returns and
remitting payment
Source: Wakefield Research, July 2013
Making sales tax less taxing.
Percentage of businesses
that believe a sales tax
auditor would find a mistake
Average total cost for
businesses to manage a
sales tax audit
Sales and use tax compliance
44
%
Source: Wakefield Research 2013
Making sales tax less taxing.
44% of accounting
professionals who’ve worked
for a company that has been
audited – and decided to
contest that audit – think the
process is more stressful
than a divorce.
Cloud/Hosted Service
•
•
•
•
Making sales tax less taxing.
Simple Installation
Simple training
No maintenance
Always up-to-date
11
Avalara’s capabilities continue to grow
Improving Technology
Expanding Integration
Avalara Services
Added support for Lat/Long, new
REST API, UPC taxability, and
high-availability cloud deployment
Hundreds of integrations on all
major commerce platforms
Expanded offering to customers with
related applications
Making sales tax less taxing.
CONFIDENTIAL &
12
End-to-End Sales Tax Compliance
Making sales tax less taxing.
13
PRODUCT DEMONSTRATION
Making sales tax less taxing.
Microsoft Dynamics GP / Customer
Maintenance
Tax Schedule
replaced with
one word:
AVATAX
Making sales tax less taxing.
15
Microsoft Dynamics GP - Address
Validation
Incomplete
Address
information
CORRECTED!
Making sales tax less taxing.
16
Microsoft Dynamics GP / Sales
Order – Tax Calculation
Taxability rules
applied and tax
calculated
automatically
Making sales tax less taxing.
17
AvaTax Dashboard - Login
Making sales tax less taxing.
18
Admin Dashboard
Making sales tax less taxing.
19
Organization Tab
Making sales tax less taxing.
20
Transaction Tab
Making sales tax less taxing.
21
Reports Tab
Making sales tax less taxing.
22
Returns Tab
Making sales tax less taxing.
23
Customer’s Avalara Experience
Making sales tax less taxing.
24
Questions & Contacts
• Contact Information
– Matthew Patrick
– Regional Sales Manager
– Matthew.Patrick@avalara.com
– 724.301.7054
Making sales tax less taxing.
25
Making sales tax less taxing.
26