Overview of Sales Tax Automation:
There are four key steps in managing sales tax for businesses in the U.S.:
Tracking Sales Tax Exposure (Nexus)
Nexus refers to the legal obligation to collect sales tax, which is determined by factors like a physical presence, employees, or sales thresholds in specific states or jurisdictions.
We automate the tracking of your sales data to identify where you have sales tax exposure across various states and local jurisdictions.
Registration for Sales Tax
Once you've identified your nexus, you'll need to register for sales tax permits in the applicable states or local jurisdictions.
We fully automate the process of monitoring your nexus and assist with the paperwork to get you registered, allowing you to start collecting sales tax.
Collecting the Right Amount of Sales Tax
This step involves calculating and collecting the correct amount of sales tax based on the product/service sold, customer location, and local tax rates.
Filing and Remitting Sales Tax
After collecting sales tax, businesses need to file returns and remit the collected tax to the proper authorities.
We fully automate this step, ensuring that your sales tax returns are filed correctly and payments are submitted on time.
Additional Scenarios We Automate:
We also handle two more complex sales tax scenarios:
Sales Tax Exemption Certificates:
If your customers are exempt from sales tax (e.g., resellers, non-profits), we help you collect and manage their exemption certificates to ensure compliance.
Voluntary Disclosure Agreements (VDAs):
If you realize you haven’t been collecting sales tax in a state where you have nexus, we assist with VDAs, allowing you to come into compliance while reducing penalties.
Please feel free to reach out for further assistance at Success@trykintsugi.com.