Sales Tax Compliance and Nex•us: Noun, Plural – a Means of Connection; Tie; Link

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Have you ever thought about the true meaning of “nexus?” Do you understand how nexus affects your business?  Did you know that you are obligated to collect and remit sales tax where you have nexus?

The definition of nexus in regard to state sales tax is “physical presence.” That physical presence clause defines what it means to be connected to a state and liable to collect and remit sales tax in that state.

There are various ways nexus can be created which make understanding and tracking nexus complicated.  Many companies are not even aware they are not in compliance with sales tax laws or rules and regulations of the state in which they do business, and managing tax tables manually within your ERP solution can just add to the risk.

Some states now define nexus to include the physical presence of affiliates or salespeople in a state. Other states are trying to derive a computer screen as a physical presence in the state—and if you access your customers via that computer screen, you can be interpreted as having nexus in that state. Still others hold to the ruling that physical presence means you have a distribution center or warehouse in a state.

If you are a Microsoft Dynamics ERP user, sales tax calculation and management of non-taxed transactions becomes less complicated with easy, fast, affordable integration of AvaTax from Avalara. The AvaTax family of products reduces your sales tax audit exposure by providing accurate sales tax calculation and full lifecycle management of exemption certificates and non-taxed transactions from within your ERP.  AvaTax can also provide timely, accurate filing and remittance of your sales tax liabilities to the appropriate taxing authorities.

The AvaTax family of products includes:

AvaTax Calc
AvaTax Calc delivers real-time sales tax calculations within your ERP based on up-to-date sales and use tax rules including: sourcing rules, product taxability and jurisdiction assignment.

AvaTax Certs
AvaTax Certs is a complete exemption certificate management service. From wizard-driven online collection to associating the correct certificate with transactions, AvaTax Certs ensures you maintain compliance and reduce your audit risk.

AvaTax Returns
Dramatically increase accuracy and reduce the time your company spends on sales tax return processing with AvaTax Returns. AvaTax Returns allows processing of e-file, hard-copy and Streamlined Sales Tax returns for businesses of all sizes.

Paying sales tax may be inevitable, but the hassle is not. Selecting a cloud-based transactional tax management solution that performs behind the scenes, manages the entire tax compliance functions of your business and seamlessly integrates with your financial or ecommerce applications is critical to reducing your risk and audit liability.  Let AvaTax take the complexity out of sales tax automation so you can focus on building your business!  

By Avalara, Sales Tax Compliance Automation for Microsoft Dynamics ERP

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