Sales Tax Compliance with SST Model 1
Why are so many organizations leveraging the Streamlined Sales Tax (SST) Model 1 program to help reduce the cost, effort and risk associated with sales tax compliance? SST offers a path to manageable, affordable and accurate compliance through technology providers that have been rigorously tested and certified by the 24 SST member states.
Sovos is one of four certified service providers (CSPs) certified by the SST Governing Board, offering clients completely accurate sales tax rates and simplified filing through our Model 1 program. We help businesses comply with each jurisdiction’s sales tax laws, allowing organizations to outsource most CSP compliance responsibilities.
The Model 1 program can be greatly beneficial to taxpayers who do not have people or property in states, but may have registered (or who need to register) under the economic nexus requirements that have cropped up across the U.S. over the last several years. With Sovos as your CSP, economic nexus taxpayers are fully supported in their sales tax function all the way through filing and remittance. It is done in a cost-effective way that limits your audit exposure.
Furthermore, Sovos would be responsible for monitoring rate and rule changes, accounting for those changes before they become effective, calculating tax correctly on your sales and timely filing and remitting.
Sovos provides direct support to the product taxability mapping exercise, assigning each seller a dedicated Managed Services tax preparer and we prioritize any technical support questions. Additionally, when audits do arise, Sovos serves as the main point of contact and takes much of the responsibility for potential penalties.
Specifically, Sovos products and services include the following:
Global Tax Determination – Our cloud solution has always-on capabilities, empowering your business with real-time tax calculations.
Sovos Filing – Streamline your filing responsibilities, regardless of the size of your business, with our intuitive software tools.
Filing Managed Services – Remove the sales tax filing burden by outsourcing to our experts who are knowledgeable on the latest filing requirements and form changes.
Sovos’ CertManager exemption certificate tools are also a critical tool for our Model 1 customers working with exempt customers. CertManager allows businesses to store and validate exemption certificates in real time, with the ability to fully automate the process through the Sovos Managed Services team.
Through the Sovos’ Model 1 program, your CSP would be responsible for monitoring rate and rule changes, accounting for those changes before they become effective, calculating tax correctly on your sales, and for timely filing and remitting. The cost is mainly absorbed by compensation Sovos receives directly from the states, helping to keep compliance affordable.