This blog was last updated on June 26, 2021
For retailers, the burden associated with Sales Tax Holiday administration can be enormous if they do not have a sales tax compliance management system in place. With Sales Tax Holidays in full swing, retailers will need to reset their cash registers or point-of-sale systems, customize their tax rates and remap their product SKUs. Without the correct systems and content in place, errors can happen. Sales Tax Holiday mistakes often make the news. This week, a Tennessee shopper noticed she had been charged sales tax on exempt items. “On the way home, I started thinking, ‘If I was taxed, how many other people bought stuff that they were taxed for?” said Denise Pishotta, the woman who noticed the error on her receipt. The retailer’s calculation solution was not accurately updated to not charge people for the relevant goods in TN on their sales tax holiday. With Taxware, retailers would simply need to apply the regularly-scheduled content updates to their system to produce a result consistent with the tax holiday for their state and local jurisdiction. Selecting the right sales and use tax compliance partner is critical. Errors can be costly, cause additional burden on customer service resources, and chip away at consumer trust. Check out the Taxware interactive Sales Tax Holiday guide and downloadable infographic. For more information or to find out how we can help with timely tax rule changes, please visit contact Taxware or Ask the Tax Expert today.
