Bayou bounce
Louisiana will raise its sales tax to 5% for five years starting January 1, 2025.
The hike, part of a measure Baton Rouge lawmakers voted in just before Thanksgiving in a special session, includes a cut to individual and corporate income taxes and elimination of the corporation franchise tax. Many digital goods and several services were also added to the state sales tax base.
This 5% tax will be on top of each local sales tax in the state; some Louisiana cities will see an overall sales tax of 10% or higher starting next year. Louisiana already had the highest combined state and average local sales tax in the country at 9.56%, according to research cited from the Tax Foundation.
Source of debate
A county district court judge in Texas has sided with six municipalities in a case that could potentially shift sales taxes for online transactions from the sellers’ cities to the buyers’ cities. The case began after regulatory changes by the Texas Comptroller made certain internet orders not considered received at the “place of business” of the seller. Previously, the regulations generally sourced the local sales tax revenue generated from these sales to the municipality with the seller’s ecommerce fulfillment or sales center.
Coppell had been fighting the comptroller’s regulations for more than three years, claiming with other plaintiffs that the warehouses, distribution centers, and fulfillment centers use expensive, city-supplied infrastructure and services.
Judge Karin Crump of the Travis County District Court decided in favor of the Texas cities of Coppell, Humble, Desoto, Carrollton, Farmers Branch and Round Rock. She ruled that the proposed regulations contradicted the state’s statutory language concerning where the sale of a taxable item is consummated and violated portions of the Texas Administrative Procedures Act.
In the bag?
Will Tennessee be the next state to eliminate sales and use taxes on groceries? Rep. Elaine Davis (R-Knoxville) has submitted a bill in Nashville that would eliminate the tax on retail sales of food and food ingredients, which is now 4% in addition to any local sales taxes. The proposed legislation does allow counties to implement a sales tax on groceries.
Only a handful of other states still have a statewide sales tax on groceries, including Alabama, Arkansas, Hawaii, Idaho, Illinois, Kansas (until January 1, 2025), Mississippi, Missouri, South Dakota and Utah. Many local communities also tax groceries.
Another sales tax for the last frontier?
Anchorage, Alaska, is entertaining a proposed ballot measure for a 3% sales tax in the city.
The sales tax would be charged on most consumer goods, for a total tax of up to $30 per transaction; only the first $1,000 of a sale would be taxable. The tax would sunset after seven years, news reports said. No date has been set for the vote.
Alaska has no statewide sales tax. Unlike the other no-sales tax states of Oregon, Delaware, Montana and New Hampshire, Alaska does have many communities that have banded together to charge sales tax, including on online transactions.
eServices made easy
The Nevada Department of Taxation has launched My Nevada Tax, an eServices platform that will give taxpayers with “a convenient, user-friendly” online portal to manage their tax accounts, file returns, make payments, and access other essential services, including sales and use tax management. Users will also be able to update account information, manage permits and licenses, register businesses, and file returns, among other functions.
Want to stay up-to-date on CereTax product and content updates?
Check out the CereTax Knowledge Base for the latest information. Be on the lookout for next month's newsletter to stay in the know when it comes to sales tax news that may impact your business.
‘Yay’ or ‘Nay’
Though voters in and around San Diego, California; Charleston, South Carolina; Little Rock, Arkansas, and elsewhere voted against sales tax measures, sales tax increases did get the Election Day green light in many parts of the country, often with specified funding purposes:
It’s Beginning to Look a Lot Like Sales Tax
Florida has issued sales tax guidance for non-permanent holiday decorations, attributing it to a lack of awareness among some businesses.
Businesses that sell or rent holiday lighting or decorations are required to collect sales tax on the total sales or rental price, including charges for design, labor, and services to install or remove the decorations and lighting. This applies to the entire transaction, covering both the sale or rental of the items and any associated services.
However, charges for labor or services to install and remove customer-owned decorations and lighting are not subject to sales tax if the business providing the services does not supply any tangible items, such as light clips, adhesive, nails, screws, or extension cords. Similarly, charges solely for removing customer-owned decorations and lighting, when the business did not originally install them, are also exempt from sales tax. Additional details and exemptions may apply.
Lease is More
As of January 1, Illinois and Maine will begin taxing each periodic lease or rental payment made for the lease or rental of tangible personal property (TPP). Both states currently charge sales or use tax upfront to the lessor based on the acquisition cost of the leased or rented TPP, rather than imposing sales tax on periodic payments to the rental customer, which is common in other states.
In addition, both Illinois and Maine have revised their sourcing rules for leases. Illinois will source leases with recurring periodic payments to the primary property location. For leases without recurring payments or where the lessee takes possession of the property at the lessor’s place of business, the same sourcing rules as sales of TPP under the Illinois Retailer’s Occupation Tax (ROT) will apply. Maine adopts a similar approach, sourcing the first payment for leases with recurring periodic payments based on general retail sales sourcing rules, while subsequent payments are sourced to the "primary property location."
The transition period for these changes varies between the two states. Illinois will continue to allow the use of an existing credit allowed when rental inventory already taxed upfront is sold, while Maine offers a refund option. Illinois exempts autos, titled property, certain licensed software, and property subject to Chicago’s personal property lease transaction tax from the new rules.
ATLANTA, November 12, 2024 -- CereTax, the next-generation sales tax solution, partners with ACTSOLV, delivering comprehensive sales tax process solutions, today to announce the launch of CereTax’s Exemption Certificate Management solution — CereTax SmartExempt. Designed for businesses seeking a streamlined and secure way to handle exemption certificates and their tax impacts, this next-generation solution simplifies certificate tracking, storage, and validation, making tax compliance easier and reducing the risk of costly audit penalties.
“Our goal is to provide a robust solution that simplifies and streamlines the tax exemptions workflow while reducing risk for our customers,” said Mike Sanders, CEO of CereTax. “With CereTax SmartExempt businesses can confidently manage exemption certificates, reduce manual work, and stay audit-ready.”
Powered by ACTSOLV, a leader in exemption certificate management technology, CereTax SmartExempt leverages ACTSOLV’s expertise to deliver a fully integrated exemption management experience.
“This partnership enables CereTax users to manage their exemption certificates more effectively and efficiently,” said Larry Powers, CEO of ACTSOLV. “Together, we’re helping businesses stay compliant and protected from audits.”
Key Features and Benefits of CereTax SmartExempt:
• Seamless Integration: Connects effortlessly with ERP’s and CereTax, automatically updating exemption data, giving companies the seamless ability to connect their customer exemptions to their tax calculation.
• Faster Audit Resolution: Tracks and requests missing certificates through automated workflows.
• Security and Scalability: A cloud-based, centralized system with robust security for secure and scalable exemption management.
CereTax SmartExempt is the ideal solution for businesses looking to streamline tax compliance, reduce risks, and stay focused on growth.
About CereTax
CereTax is a next-generation sales tax automation solution that leverages the latest advancements in cloud technology to revolutionize how a sales tax calculation platform operates. CereTax processes millions of transactions per month for some of the largest enterprises, enabling companies to do business reliably and in compliance. CereTax was founded in 2021 and is headquartered in Atlanta, Georgia. Learn more about CereTax at https://www.ceretax.com/.
About ACTSOLV
ACTSOLV leverages best practice technology with exemption certificate experience that improves internal controls and provides customers with confidence that exemption documentation and data are correct and complete. CertSOLV℠ automates this process, helping to ensure full compliance while reducing the incidence of missing, misplaced, inaccurate, or expired certificates, while effectively managing companies’ certificates ranging from a few hundred to hundreds of thousands.
No Sales Tax on Groceries
Oklahoma has passed Enrolled House Bill No. 1955, which amends the Oklahoma Sales Tax Code to introduce a zero state sales tax rate on certain food items and defines terms such as “bundled transaction” and “distinct and identifiable products.” It also expands definitions related to tangible personal property and outlines the effects of sales tax levies by political subdivisions, including prohibitions on modifications to the levy of sales tax for a specified duration.
The Act clarifies calculations for "gross receipts" and "sales price," outlines conditions for bundled transactions, dietary supplements, and software, and addresses price reductions, business presence, and manufacturing activities. It also defines classifications for over-the-counter drugs, prepared foods, and provides guidelines for the sale and resale of tangible property and services.
New provisions impose a zero-percent excise tax on retail sales of food and food ingredients for off-premises human consumption until June 30, 2025, and require counties or municipalities to exclude “food and food ingredients” from any increased sales tax rate when submitting tax questions to voters.
Tax Surge on Phone Bills
The Tax Foundation reports that a typical American household with four phones on a family share plan, paying $100 per month for taxable wireless service, would pay nearly $320 per year in taxes, fees, and government surcharges, up from $294 last year. Nationally, taxes, fees and government surcharges make up a record-high 26.8% tax on taxable voice services.
After decreasing in 2023, the Federal Universal Service Fund charge increased in 2024 from 10.8% to 12.8%. State and local taxes also increased, from 13.7% to 14%.
Oklahoma had the largest increase of any state in 2024, from 26.9% to 31.1%, due to increases in the 911 fee and the State Universal Service Fund charge. Illinois residents continue to have the highest wireless taxes in the country, at 36%, followed by Washington (34.4%) and Arkansas (34.2%). Idaho residents pay the lowest wireless taxes, 16.1%.
Corn Just Got More Expensive
The Nebraska Department of Revenue announced changes in local sales and use tax rates as of Oct. 1: Adams will impose a new 1% rate; Grafton and Kenesaw will each impose a new 1.5% rate; Lyons will increase its rate from 1.5% to 2%; and Mullen and Nelson will each increase their rate from 1% to 1.5%.
With the recent approval by the Nebraska Department of Economic Development of two additional Good Life Districts (GLD), the state sales tax rate of 2.75% will be effective on October 1, 2024, on taxable transactions occurring within these GLDs that are also located within the city boundaries. The two newest GLDs are located in Grand Island and Bellevue.
No Seller Left Untaxed
Starting in January, Illinois will implement changes to its sales tax sourcing rules for out-of-state sellers. Public Act 103-0983 aims to simplify tax compliance by applying destination-based sourcing uniformly for both remote retailers and out-of-state sellers shipping goods from outside the state.
Out-of-state retailers with a physical presence in Illinois will be required to collect state and local taxes at destination-based rates when shipping from outside Illinois, aligning them with the tax obligations of remote sellers. Sellers shipping from within Illinois will pay taxes based on the ship-from address, while those shipping from outside the state are subject to the state use tax without additional local taxes.
Marketplace inventory used solely for registered marketplace facilitators does not create a physical presence for sellers, as the facilitator is responsible for tax collection. Sellers without a physical presence in Illinois will continue to follow destination-based sourcing, charging taxes based on the delivery address.
States Urged to End Sales Tax Guesswork
At recent U.S. Senate Finance Subcommittee hearings on Fiscal Responsibility and Economic Growth, witnesses at recent hearings emphasized the need for states to simplify the patchwork of sales tax regulations and remote-seller obligations to provide relief for small businesses.
Testimonies were provided by Joe Bishop-Henchman, executive VP of the National Taxpayers Union Foundation; Craig Johnson, executive director of the Streamlined Sales Tax Governing Board; and Diane L. Yetter, president of Yetter Consulting Services and the Sales Tax Institute. Yetter emphasized that determining the correct tax to collect shouldn’t be a "guessing game" for sellers, calling for clear, accessible, and fair tax rules.
Witnesses advocated for uniform nexus requirements and definitions, urging states to simplify compliance and improve transparency. Bishop-Henchman suggested that even states not joining the Streamlined Sales Tax Agreement could still demonstrate efforts to reduce compliance costs for businesses.
Want to stay up-to-date on CereTax product and content updates?
Check out the CereTax Knowledge Base for the latest information. Be on the lookout for next month's newsletter to stay in the know when it comes to sales tax news that may impact your business.
Sales tax and vertical-specific transaction taxes in the U.S. are incredibly complex, varying significantly across states and even at the local level. Some taxes apply to other taxes, adding another layer of complexity. So, why start a business in sales tax? It's a good question, and here's why we did it.
Opportunity arises from need—whether it's the need for a new solution or alternatives when existing options fall short. Existing sales tax solutions might not be "bad," but they often have limitations—restricted by scope, age, or lack of support.
The opportunity for CereTax was to create a modern sales tax solution capable of managing various taxes for complex vertical markets through a single consolidated platform. We also aimed to bring this solution to market with a "Value Culture" dedicated to serving clients with excellence.
Experience was another key factor. The founding team at CereTax has decades of knowledge in various areas of indirect tax. We knew from our past experiences that we could assemble a stellar team with expertise in sales tax who share our values and goals. During the hiring process, we found many professionals with similar backgrounds eager to join our mission. This resulted in a collaborative team of experienced professionals united toward one vision.
Lastly, we were driven by the challenge. There hasn't been anew sales tax calculation solution in the market for many years, and none of the recent offerings have attempted to support complex industries like construction, manufacturing, telecommunications, and deregulated energy. We believed we could create a platform using modern software development techniques to manage all this complexity through a flexible and robust interface.
While there's still work to be done to fully realize our vision, we are pleased to have launched CereTax using our own designs and methods for research, GIS, technology, and content. We are committed to continuous improvement as we deliver solutions for additional markets, integrations, and tax types.
To answer the original question, we created CereTax because we were motivated by the opportunity to build and deliver a next-generation sales tax solution with an experienced team dedicated to serving clients with excellence. This service-minded approach drives our culture and everything we do.
Click here to connect with a team member to learn more about CereTax can simplify financial operations for you business.
|
Mike Sanders Co-Founder and CEO, CereTax |
Ideal Living, based in Los Angeles, specializes in creating, marketing, and distributing innovative products to enhance health, wellness, and home environments. Their mission is to ensure everyone has access to clean air, clean water, and a solid foundation for wellness. They achieve this through their products: AirDoctor, AquaTru, and Aromatru.
Manual Processes Created Inefficiencies and Increased Risks
Ideal Living faced several challenges in managing its B2B sales operations. The Accounts Receivable (AR) team manually handled sales tax calculations, requiring it to lookup tax rates, input them into the system, and then check them for accuracy. The process consumed significant time, risked errors, and led to dissatisfaction among the team. Every month, the AR team would need to correct entries for 10-20% of new B2B customers, resulting in needless delay. As Ideal Living rapidly expands its business from individual to commercial customers, with plans to quadruple its size by the end of the year, the existing process became unsustainable and unscalable. The team had to make a change.
CereTax and Microsoft Were Implemented for Automation
To address these challenges, Ideal Living integrated CereTax Sales Tax with Microsoft Dynamics 365 Business Central, with the assistance of an implementation partner. The implementation process was straightforward and streamlined, supported by the responsive and knowledgeable CereTax team. The project, which ran from October to December 2023, included testing mid-way through. It included specific sales tax content for food and supplements and a custom shipping method, incorporating taxability behind the shipping, to ensure accurate tax calculations.
The CereTax team conducted training sessions and converted existing mappings to ensure a smooth transition. They maintained weekly calls to quickly resolve issues and provide ongoing support. Setting up SKU and customer information took just two weeks, followed by training and testing phases. Open lines of communication were vital for a seamless transition, and having a knowledgeable support team was crucial for addressing specific questions and concerns, ensuring the team felt fully supported throughout the process.
"Of all the integrations we set up with Microsoft Dynamics 365 Business Central, CereTax was by far the most straightforward and streamlined. The process was very easy, and the team was exceptionally responsive and knowledgeable," said Lina Pinskaya, Controller of Ideal Living.
CereTax’s Certified Microsoft Integration
CereTax provides a certified integration with Business Central. This allows the Ideal Living Sales and Accounting teams to manage the entire sales tax process directly from within the ERP, utilizing native workflows. As part of the implementation process, CereTax set up its robust rules engine to accommodate specific requirements with custom rules.
The tight integration between CereTax and Business Central ensures that issues are promptly flagged within the Business Central interface, allowing for swift resolution. One common example is the native Business Central posting approvals. If Business Central stops an invoice from posting due to a missing field, CereTax will also prevent the invoice from posting on its side. Conversely, if an invoice is ready to post in Business Central, but CereTax detects an issue, it blocks the posting process.
“The CereTax integration with Microsoft Dynamics 365 Business Central was easy to set up, enabling real-time data synchronization between the solutions. It leverages Microsoft’s native functionality, eliminating the need for customization on our part,” said Lina Pinskaya, Controller of Ideal Living.
Ideal Living Saw an Immediate Increase in Efficiency and a Reduction in Workload
The success of sales tax automation was evident immediately. The CereTax process ran on its own with significantly reduced human oversight. Fewer data entry errors needed to be corrected. The AR team spent less time setting up and correcting invoices before they were sent out. And because of the training sessions, sales and accounting teams more efficiently managed sales tax in Business Central.
"We've seen a dramatic reduction in time spent on manual processes. The new system has truly streamlined our operations," said Nini Le, Accounting Consultant for Ideal Living.
The CereTax team consistently provides support as needed, demonstrating responsiveness and quick turnaround times. They promptly hold calls to resolve issues and offer assistance from highly knowledgeable staff. Their responsiveness to specific questions ensured Ideal Living felt supported when transitioning to a new system and application.
"Having a knowledgeable support team made all the difference. They were responsive to our specific questions and helped us feel supported throughout the transition and after," said Lina Pinskaya, Controller of Ideal Living.
Ideal Living Positioned for Growth with Sales Tax Automation
In conclusion, the move to automation with CereTax and Microsoft Dynamics 365 Business Central significantly improved Ideal Living’s operational efficiency. By automating sales tax calculations and streamlining the invoicing processes, the company reduced the time and resources spent on error-correction, streamlined operations, and positioned itself for successful business expansion. The project highlighted the importance of thorough planning, effective training, and responsive support in streamlining business processes and automating sales tax.
"We knew we needed a solution to streamline our operations and support our rapid business growth. CereTax and Microsoft were the perfect fit," said NiniLe, Accounting Consultant for Ideal Living.
ATLANTA, GA – CereTax, the next-generation sales tax solution, today announced a $9 million financing led by S3 Ventures, with participation from Wild Basin Investments and Leaders Fund.
CereTax revolutionizes sales and use tax automation by combining the modernization of a true cloud solution with a relationship-first team of indirect tax experts. Unlike older tax systems plagued by long implementations, inflexibility, and scalability limits, CereTax provides a modern solution that meets the high demands of today's businesses with ease. This year, CereTax’s revenue has more than tripled year-over-year while enabling 20+channel partners.
“Sales and use tax determination and compliance is complex and burdensome,” said Aaron Perman, Partner at S3 Ventures. “The legacy solutions used by the vast majority of enterprises struggle to handle the complexity and scale of modern business, and errors can result in significant tax liabilities and penalties. We are excited to partner with CereTax for the long haul as they build the first new enterprise SaaS platform for indirect tax in twenty years.”
“With CereTax Sales Tax, we've seen a dramatic reduction in time spent on manual processes. The new system has truly streamlined our operations," Lina Pinskaya, Controller of Ideal Living. “Having a knowledgeable support team made all the difference. They were responsive to our specific questions and helped us feel supported throughout the transition and after.”
With the new funding, CereTax will further invest in product innovation and supporting customers and partners. Key early hires to scale the company and grow the business include Dario Salas Machado as Vice President of Finance, bringing over 15 years of finance and business expertise, and Marni Burger as Vice President of Marketing, with over 15 years of experience in B2B software and SaaS marketing.
CereTax is also excited to announce the addition of Robert Alvarez to the board of directors. With a proven track record at companies like BigCommerce, Robert's expertise in scaling high-growth technology businesses will be invaluable to CereTax's future endeavors. Robert's deep understanding of financial strategy and operational excellence will enhance CereTax’s commitment to innovation and customer success.
"By growing the leadership team and expanding the board, CereTax is strategically positioning itself for a new era of growth and innovation,” said Mike Sanders, CereTax’s CEO and Co-Founder. “Their combined expertise and vision will be invaluable as we continue our relentless focus on customer and partner success while achieving substantial growth in the years to come."
About CereTax
CereTax is a next-generation sales tax automation solution that leverages the latest advancements in cloud technology to revolutionize how a sales tax calculation platform operates. CereTax processes millions of transactions per month for some of the largest enterprises, enabling companies to do business reliably and in compliance. CereTax was founded in 2021 and is headquartered in Atlanta, Georgia. Learn more about CereTax at https://www.ceretax.com/.
About S3 Ventures
Founded in 2005, S3Ventures leads Seed, Series A, and Series B investments in Business Technology, Digital Experiences, and Healthcare Technology. Backed by a single limited partner — a highly philanthropic family with a multi-billion-dollar foundation — S3 Ventures empowers visionary founders with the patient capital and true resources required to grow extraordinary, high-impact companies. Learn more about S3 Ventures at https://www.s3vc.com/.
Throughput is an interesting concept. While it seems straightforward, like the rate of water flowing through a garden hose, it becomes more complex when dealing with financial transactions. Not all transactions are created equal.
In financial transactions involving buying or selling, there's usually an invoice. This could be a sales order, a purchase order, or items from an online shopping cart. Depending on the type of transaction, this “invoice” may include various details such as purchase location, shipping information, product or service line items, quantities, discounts, and more.
From a sales tax engine perspective, all these invoice data points must be collected, evaluated, and processed for accurate tax calculation. Each invoice, or transaction, can vary significantly in the data it contains. For instance, one transaction might be a sales invoice with hundreds of product line items, while another might be transactions from an e-commerce site as items are added to a shopping cart. Other transactions could involve real-time cell phone data from a telecom provider or multiple telecom Voice-over-IP switches sending requests simultaneously.
Processing these transactions for sales tax calculation can be challenging. It takes time to determine what data is contained, process it, and deliver the correct tax amounts. When the rate of inbound data to the tax engine is very high, originating from numerous and diverse sources, most systems struggle to handle the throughput. This challenge is compounded when multiple high-volume events occur simultaneously, such as processing Black Friday transactions while others are submitting large batches of invoices from an accounting system. We have historically seen existing sales tax engines fail under these conditions—they simply cannot handle the data burst.
For the production release of CereTax, we focused extensively on designing ways to handle data bursts. We support financial transactions or invoices from many different vertical markets, each with its own complexities. At launch, we successfully processed 10,000 simultaneous transactions per second for a prolonged period with no errors. This level of processing throughput is not affected by the type of invoice or whether it contains one line item or 500. However, this rate is not our limit; we considered it a fair representation of a burst event that would overwhelm most sales tax engines.
One advantage of delivering a modern sales tax engine is the ability to use current approaches for system architecture and data management. We are fortunate to incorporate these techniques into the CereTax design. Our clients can send transactions to our tax engine at any burst level—they can trust that we understand throughput and will not break.
Click here to connect with a team member to learn more about CereTax can simplify financial operations for you business.
|
|
Mike Sanders Co-Founder and CEO, CereTax |
Sales and purchase transactions involve numerous data elements. For sales, these elements include addresses, products, quantities, discounts, and shipping costs. Purchase transactions, especially those from ERP or accounting systems, can include even more elements like GL account numbers, purchase order numbers, cost centers, vendor names, and more. Additionally, considerations for customer or vendor exemptions, jurisdictional allocations, and management of accruals and payments add to the complexity. This makes calculating the correct sales tax or consumer use tax very challenging.
Further complicating matters, companies often have various customizations in place for their internal accounting. There can be up to 20 additional elements when recording sales or purchases, with these elements and their values differing by legal entity, business unit, or product line. Each element can impact how a transaction is identified for tax calculation purposes.
To address this complexity, we developed the CereTax rules engine, designed to handle all these scenarios. It uses if-then conditions that are easily configured to evaluate any value for the provided data. The data elements used by the rules can be weighted to create a hierarchy of importance, allowing for numerous rule configuration options to manage complex data requirements.
Moreover, the CereTax interface supports an unlimited number of user-specified data elements and values. Users can label each specific element within the platform to include it as an additional rule configuration element. Data values can be grouped into lists or key/value pairs for lookups during rule execution. The possibilities for data evaluation within the CereTax rules engine are virtually limitless.
Given the robust data capabilities of the rules engine, transparency throughout the process is essential. An audit layer logs all actions, events, and outcomes generated by the rules engine. From the source transaction through all evaluated and executed rules to the final transactional data and computed tax, a detailed history of events is available for review. This provides complete visibility into the entire workflow, creating a streamlined audit trail.
The CereTax rules engine offers many additional features and benefits that are too numerous to cover in a single blog post. We believe that the functionality, capability, transparency, and audit trail of our rules process set CereTax apart from all legacy tax engines.
Want to see how the power of CereTax can help your business manage sales tax operations?
|
|
Mike Sanders Co-Founder and CEO, CereTax |
In the landscape of ever-evolving technology, efficient business and financial operations are key to success. When it comes to sales tax, organizations strive to streamline their processes, minimize risk, and maximize revenue. CereTax makes this process seamless with our integrations and flexible APIs that allow businesses to easily connect our tax platform with their billing and ERP systems.
CereTax has powerful native integrations with Oracle NetSuite, Microsoft Dynamics 365 Business Central or Finance & Operations, QuickBooks, and a variety of billing platforms. These integrations allow your business to simplify tax automation without the need for additional developer resources or overhauling your existing infrastructure.
CereTax provides robust APIs, designed to facilitate smooth communication between our platform and any number of financial systems. With CereTax's APIs, businesses can bid farewell to the clunky APIs and difficulties with synchronization. Instead, they can embrace automation and real-time data exchange, paving the way for unparalleled efficiency as they grow their business into new markets, add new products, and acquire other businesses.
CereTax's APIs extend beyond mere data exchange. CereTax's APIs empower businesses with advanced functionalities for simplifying sales invoicing, solving industry specific use cases, creating custom reports, and identifying over or under paid taxes on purchases. These capabilities not only enhance operational efficiency but also unlock new avenues for strategic decision-making and revenue optimization.
By integrating with your business’ ERP or accounting system, CereTax enables end-to-end visibility and control over the entire indirect tax process for your finance department. This allows your team to make data-driven decisions, optimize resource allocation, and adapt swiftly to regulatory changes.
CereTax's native integrations and APIs represent a paradigm shift in the realm of tax automation as the extensive use of developer resources and misaligned integrations are a thing of the past. The power of our APIs lies not only in their technical capabilities but also in their ability to give businesses tax processing efficiency, visibility, and scalability. By embracing CereTax's APIs, organizations can unlock hidden tax revenue, streamline financial operations, and stay ahead in today's competitive landscape.
In this video CereTax's CRO, Brent Reeves, gives an overview of the automated failover process within the CereTax platform. With a presence in dual regions, US East and US West, each containing multiple availability zones, we offer numerous failover locations in real-time. There's no downtime waiting for systems to spin up, and no data loss.
Brent demonstrates the failover process by simulating an outage in one region whereby CereTax automatically performs checks to verify the issue and then routes traffic to the alternate region with no downtime or data loss.
The world of taxes has a reputation for being complex, time-consuming, and downright confusing. But what if there was a way to simplify the process, streamline tasks, and gain deeper insights into your financial situation? Enter the world of Artificial Intelligence (AI), which is rapidly transforming the landscape of tax technology. We'll briefly explore 4 key areas where AI is actively assisting and preparing to aid people and businesses in managing their sales tax.
From Tedious Tasks to Strategic Support
As AI technology expands it will be able to fully manage the manual inputs required for tax preparation. Repetitive tasks like data entry, calculations, and form filling will become fully automated, freeing up human professionals to focus on more strategic aspects like tax planning and client interaction. This will save businesses time, money, and personnel resources as well as reducing the risk of errors.
Compliance with Confidence
Navigating the ever-changing maze of tax laws and regulations can be a daunting task. Currently AI can assist in analyzing vast amounts of data to identify potential compliance issues and inconsistencies. The level of discernment applied by today's technology will only expand as AI evolves over the coming years.
The Power of Machine Learning
Classification models have the ability to learn from large datasets and the existing tax decisions within them in order to make predictions on new incoming data. When leveraged properly, these models have enormous potential to accelerate review processes and even provide a confidence score alongside their predictions to help reviewers to hone in on predictions where the model may have less certainty. But the most impressive value comes from the way that the models can be retrained based on corrections by reviewers so that they are continuously improving their accuracy over time.
Proactive Partner, Not Just a Tool
AI-powered tools already go beyond mere data analysis. They can continuously monitor tax law changes and client data, proactively notifying users of potential opportunities or risks. This foresight empowers businesses to make informed decisions and adapt their strategies efficiently. This will also enable better forecasting and reporting for businesses as AI becomes a core aspect of data management across all technology platforms.
While AI brings exciting possibilities, it's important to remember it's not a replacement for human expertise. Complex situations still require the judgment and interpretation skills of qualified professionals. Additionally, building trust and rapport with clients remains an essential aspect of tax services, something AI will likely never be able to fully replicate.
The future of tax technology looks promising, with AI acting as a powerful tool to enhance efficiency, accuracy, and personalization. However, it's an ongoing evolution, not the flipping of a switch. Human expertise will continue to play a crucial role in navigating the complexities of taxation, with AI acting as a valuable partner in streamlining the process and enhancing data that decision makers rely on. If you’re interested in learning about how powerful tax automation tools backed by true tax industry experts can help your business handle indirect taxes connect with us here.
From Our Partners at Peisner Johnson:
Sales tax compliance is a multifaceted process that can pose significant challenges, especially for businesses operating across multiple states or jurisdictions. However, with the advent of innovative tools and partnerships, the intricacies of sales tax compliance can be effectively managed. Let’s talk about the nuances of sales tax compliance and how CereTax, and their partners, can simplify this process.
Sales tax compliance entails a business's responsibility to accurately collect, report, and remit sales taxes to the appropriate authorities. The foundation of these obligations lies in the concept of nexus— the specific connection a business has with a jurisdiction. Nexus can be established through a physical presence, known as physical nexus, or through economic activities, referred to as economic nexus.
Businesses need to identify their nexus footprint, which constitutes the states where they have either a physical or an economic nexus. This involves understanding the taxability of their offerings, the applicable tax rates, and the requirements for filing and remitting sales tax returns in each of these states.
Sales tax compliance can present several hurdles, particularly for businesses that operate across multiple states or jurisdictions. These include:
Our cutting-edge sales tax automation platform here at CereTax is designed to address the challenges you may encounter and streamline the sales tax compliance process. Here's how:
In addition to the powerful software solution we provide at CereTax, businesses can also harness the expert consultation services of our proud partner, Peisner Johnson, a leading sales tax accounting firm. This synergistic partnership equips businesses with a comprehensive suite of tools and services for dealing with sales tax compliance.
Peisner Johnson offers a variety of services that complement CereTax’s software:
Using both CereTax's top-notch software and Peisner Johnson's expert consulting simplifies sales tax, giving you peace of mind. So you don’t have to worry about your sales tax compliance ever again.
Sales tax compliance, though complex, can be significantly streamlined with the right tools and partnerships. By leveraging the capabilities of CereTax and the expertise of Peisner Johnson, businesses can confidently navigate the maze of sales tax compliance, ensuring they remain compliant and prosperous in a rapidly evolving commercial landscape.
Want to learn more about CereTax's partner Peisner Johnson? Click the link below.
From Our Partners at Peisner Johnson:
Sales tax is a complex part of doing business, particularly in the United States where rules and rates can vary widely from state to state. One of the key aspects of sales tax that businesses must understand is the concept of nexus. So, in this blog we will delve deeper into the nexus definition, the difference between physical nexus and economic nexus, and how you can calculate your nexus footprint to ensure your business remains compliant with all its sales tax obligations.
In the context of sales tax, nexus refers to the relationship between a business and a jurisdiction that enables the jurisdiction to impose a sales tax obligation on the business. Simply put, if your business has nexus in a particular state, you have passed the established thresholds for commerce in that state and you are now required to collect and remit sales tax on sales made to customers in that state.
There are two distinct types of nexus: physical nexus and economic nexus. Each of these types has its own unique set of rules, regulations, and guidelines which are designed to govern its application and operation. While they differ in their defining characteristics and requirements, triggering either the physical or economic nexus invariably necessitates the inclusion of that particular jurisdiction into your nexus footprint. This means that if you meet the criteria for either of these nexuses in a specific jurisdiction, you are obligated to comply with the tax laws of that jurisdiction, thereby expanding your nexus footprint.
Physical nexus is the traditional form of nexus. It is established when a business has a physical presence in a state, such as a store, office, or warehouse. Employees or representatives operating in a state can also create physical nexus. This means that a traveling salesperson, a remote employee, or even property owned or leased in a state could trigger nexus.
For many years, physical nexus was the primary way that businesses established sales tax obligations. However, the rise of e-commerce has prompted a significant shift in how nexus is defined and applied, leading to the creation of economic nexus.
Economic nexus is a more recent development in sales tax law. It was established by the Supreme Court's decision in the 2018 case South Dakota v. Wayfair, which ruled that states could require out-of-state businesses to collect and remit sales tax based on the volume of their economic activity in the state, even if they had no physical presence.
This landmark ruling means that if your business makes a certain amount of sales or conducts a certain number of transactions in a state, you may have economic nexus in that state and be required to collect and remit sales tax. The thresholds for economic nexus vary from state to state, making it crucial for businesses to stay updated on the legislation in each jurisdiction where they conduct business.
Understanding your nexus footprint – the states where your business has either physical or economic nexus – is a critical part of your sales tax compliance strategy. This knowledge helps you identify where you have sales tax obligations and allows for strategic planning.
One effective way to calculate your nexus footprint is by leveraging the power of CereTax's advanced software. It conducts a comprehensive analysis of your business activities, including your physical presence, sales volume, and transaction count in each state. This helps you stay on top of your compliance even as your nexus footprint expands into new jurisdictions.
In some cases, it may be highly beneficial to discuss your specific situation directly with a sales tax expert. This is where our trusted partner, Peisner Johnson, becomes an invaluable resource. With their vast expertise in the field, they can provide accurate and timely guidance tailored to your unique sales tax concerns. They even offer free consultation calls for those encountering sales tax challenges, making them a great go-to resource in navigating the complex landscape of sales tax.
Calculating your nexus footprint is not just a best business practice – it's a legal obligation. Neglecting to collect and remit sales tax where you have nexus can lead to penalties, interest, and even damage to your business's reputation. Regularly reviewing and validating your nexus footprint as your business evolves is crucial.
The complexities of sales tax can be daunting, but with CereTax's innovative software, you're not alone. Our platform makes it easy to calculate your nexus footprint, stay informed about changes in sales tax legislation, and ensure your business stays compliant with all sales tax obligations.
Understanding your nexus footprint is a vital aspect of managing your sales tax obligations. Whether it's physical nexus through a tangible presence or economic nexus through your volume of sales, each form requires careful consideration and regular monitoring. By partnering with CereTax, you can navigate the complexities of sales tax legislation with confidence. Remember, staying informed and proactive is the key to ensuring your business remains compliant and successful in the ever-evolving world of commerce.
Want to learn more about CereTax's partner Peisner Johnson? Click the link below.
