Sales Tax Changes, Audits and Compliance for 2013

Posted by Gerry Poe

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The Landscape Changed in 2013 for Sales Tax, Audits and Compliance
Automating your business' sales tax not only reduces your audit risk, but as with most structured business processes, it will save you time and money too.

The only way to be certain of charging the correct tax rate for a given jurisdiction is to have geographic-level accuracy, pinpointing the exact location of the transaction, and in turn identifying the corresponding tax jurisdiction.

Geographic-Level Accuracy

AvaTax by Avalara offers a cloud-based sales tax automation service integrated seamlessly with your SYSPRO ERP software. The service uses geo-coding technology to validate the transaction address and retrieve the correct rate. Avalara’s team of compliance experts work around the clock to ensure that you always have the most up-to-date rate, rule, and boundary information at your fingertips.

Automating sales tax not only reduces your audit risk, but as with most things you automate, it will save you time and money.

ZIP Codes were created by the US Postal Service for the sole purpose of delivering mail. They were never intended for use in sales tax calculation. To learn more about the dangers ZIP code based sales tax management we bring you this hour-long broadcast of the latest changes for 2013 sales tax.

Here are some interesting facts about ZIP codes:

  • ZIP Stands For Zoning Improvement Plan

    ZIP stands for Zoning Improvement Plan. ZIP codes help identify the regional destinations of pieces of mail. ZIP codes beginning with "0" are for areas in the eastern United States with the numbers increasing to the west with "9" indicating states in the western United States. The next two numbers indicate region and the last two numbers indicate specific post offices.

  • ZIP +4 Code Was Introduced In 1983

    The +4 portion of ZIP codes denote smaller or more specific areas of a postal ZIP code. A +4 segment could be a group of buildings, several streets or a floor in a high-rise building of a commercial district.

  • Unique ZIP Codes

    Here are a few unique ZIP codes: 79754 is the ZIP of Loving County, Texas, the least densely populated county in the country, Ketchikan, Alaska has the highest ZIP code: 99950 and the public ZIP code for the White House in Washington, D.C. is 20500 but there is also a private ZIP +4 code for the personal mail of the President and First Lady.

ZIP codes are somewhat like sales tax jurisdictions. They are irregular shaped and do not align to intersections of streets, cities, or counties. They’re dynamic, and their boundaries are often redefined. However the key is that while they have similar attributes, ZIP codes are not the same as tax jurisdictions. There are times when they do coincide, but there are also many times when they don’t. So knowing that both ZIP codes and tax jurisdictions are quirky and subject to change independent of one another, why would you rely on ZIP codes for accurate sales tax calculation? Yet many companies do just that, putting themselves at unnecessary audit risk.

We hope your company benefits and you have a better year knowing these sales tax solutions are at your fingertips.

Download your Avalara Sales Tax for SYSPRO Fact Sheet here:

syspro espresso fact sheet

Does Your Enterprise Software Solution contain these integrated systems?

  • Sales Tax Extended Compliance – Multi-Jurisdictional/State/local/gepspatial
  • Value Added Tax (VAT) Management
  • Asset Management with Multiple Methods for Federal/State
  • Standard Process Costing
  • Foreign Currency Exchange
  • Financial Reporting and Analysis
  • Budgeting / Forecasting

These questions are but a few in the Complete Enterprise (ERP) Self Assessment which includes over 300 questions. You can download the complete ERP self assessment here:

Download the Checklist: The Complete Enterprise  (ERP) Self Assessment



Tags: Enterprise Software, Sales Tax, SYSPRO Support

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