On July 23rd, 2015, CNBC published an article highlighting how Sovos Compliance breaks down the complexity of sales tax holiday information. With a total of 18 states and Puerto Rico now holding these retail holiday weekends, it is important for businesses to understand what is exempt in each jurisdiction. Every state has its own rules regarding qualifying purchases, which can make it extremely difficult for both consumers and companies to keep track and make the right adjustments for shopping trips.
Sovos Compliance assists businesses by providing clear guidance regarding the rules for each state. As Charles Maniace, Director of Tax Research, points out in the article on sales tax holiday weekends, “The line between what’s an eligible product and an ineligible product is very thin.”
The burden can be enormous if companies do not have a robust and agile process that updates their POS systems and other tools appropriately when these unique events occur. For a sales tax holiday, for instance, all of the following may need to be implemented to remain compliant:
- Reset POS systems and/or cash registers
- Customize tax rates
- Remap products SKUs
- Re-categorize certain inventory
Sovos Compliance offers a comprehensive sales tax compliance management system where retailers simply need to apply the regularly-scheduled content updates to their system to produce a result consistent with the tax holiday. This innovative and robust tool automates tax holiday compliance for any type of enterprise organization and calculates all other tax rates and changes properly.