The beginning of a new year signals a fresh opportunity to assess your sales and use tax purchase side process and Sovos is here to help ensure you are staying compliant. Consider the points below and ask yourself, what needs to change to be efficient, prepared, and compliant for this year.
Do You Know Where Your Tax Obligations Exist?
It is important to know all your company’s obligations from where you ‘use’ property, and how it moves from one jurisdiction to another, to what tax liabilities are associated with these movements. You should also be familiar with how your vendors should be handling their tax obligations. And, everyone should know if there are special rates or exemptions that should be applied for specific transactions.
Are You Up to Date on Your Rates?
Double-check that you and your vendors are current on rates, exemptions, and other rules in every jurisdiction where you do business so you pay the correct rates and avoid penalties, over paying or short paying.
Make Sure You Know How to Pay Taxes Correctly.
Review which forms are needed in which jurisdiction so taxes are accurately reported. Apply for a direct pay permit if your business is eligible to help streamline transaction reporting and eliminate vendor error.
Don’t Needlessly Overpay Vendors.
Have you implemented invoice verification, tax tolerance processing and/or evaluated receipt settlement? These measures can help avoid costly tax errors that can create audit risk and penalties.
Put an Effective, Efficient, and Scalable Tax Compliance Process in Place Now!
With sales and use tax audits on the rise as states look for additional sources of revenue, now is the time to review each of these steps within your organization and make the appropriate changes whether that means updating your internal technology, developing a team of experts in house, or utilizing a vendor to efficiently automate your tax process for both your A/P and A/R departments.
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