1. Sales Tax on ALL Internet Sales?
Ian S. Clyde
National Director of Sales
(206) x 1089
© Copyright Avalara, 2014

2. The Industry Leader in Automated Sales Tax Compliance
Thousands of customers
Hundreds of Connectors
Billions of Calculations
Millions of Exemption Certs
Hundreds of Thousands of Sales Tax Returns

3. Just a few of our integrations

4. A few of our ecommerce integrations

5. How AvaTax Works – A Tax Engine in the Cloud
Transactional
Data
Connector
Returns & Remittance
states
This is the last slide – I want to explain exactly how we do what we do in a conceptual way, before hopping into the live demonstration.
The grayed out invoice represents anywhere sales tax is calculated. It could be an accounting package, a custom invoicing application, or an ecommerce shopping cart. When sales tax needs to be calculated it calls out to our tax engine, circunavigating the manual tax engine of your application. This is “Software as a Service” aka “Cloud computing”.
The four boxes represent our tax engine AVATAX. They also represent a BEST PRACTICES sales tax calculation – as long as our tax engine is set up properly, all your transactions will calculate correctly.
The last three green boxes represent the Compliance piece. You review a worksheet once a month, approve the amount of sales tax due in each jurisdictions, then make one remittance to our trust account and we create, file & remit all your tax returns.
It’s an A – Z service providing the highest level of sales tax compliance at the overall lowest possible cost.
Rates &
Rules
AvaTax does not support cash basis accounting - must be accrual

6. Components a of Sales Tax Risk Profile?
Nexus – where should you be collecting sales tax?
Exemption Certificate Management
Product & Service Taxability
Jurisdictional Rate Assignment
Sales Tax Returns
Reporting & Audit Defense
Business Process in regards to Sales Tax
Where is tax calculated?
How is it managed?

7. Nexus… Where to collect and remit?
Quill vs. North Dakota (1992) – U.S. Supreme Court Case
Due Process
The Commerce Clause
“Substantial” Physical Presence
Office
Warehouse
Employees Living in the State
But there is more…

8. Have you created nexus in other states?
Do you have traveling sales people in the state?
Do you utilize contract labor in the state?
Do you have company representatives in the state?
Do you own or lease any real or personal property in the state?
Do you promote your products or services in the state?
Do you participate in trade shows or exhibits in the state?
(And every year this list continues to grow)
Have you created nexus – presence – in any new tax jurisdictions this past year? Have you expanded your field sales force or resellers channel? Did you attend or participate in a new tradeshow? Are you selling or servicing products in new areas? Each state is different when it comes to defining nexus. In some states, simply attending a tradeshow creates nexus. Make sure you review your nexus status and get expert assistance to ensure you are compliant.
Questions to ask yourself:
Do you have traveling sales people that physically enter the state to conduct business?
Do you utilize contract labor in any way or for any purpose in conjunction with the sale of tangible personal property or the performance of a service?
Do you have marketing personnel and/or other company representatives, or are you affiliated with in anyway individuals that enter the state for purposes of conducting business or representing your business in any way, either directly or indirectly?   
Do you own or lease any real or personal property located in the state?
Do you participate in any trade shows or exhibits that promote your products or services in the state
Determine if you created nexus in any new jurisdiction over the year
Have you sent an agent or sales representative to a new state? Delivered and installed a product in a new state on a regular basis? Did you hire new employees that work from a remote location? Answering yes to any of these questions may mean that you will have nexus in a new state.
Nexus laws are often quite complex and each state is different. Review the laws in each new state where you conducted business. If you have indeed established nexus, check the state’s sales tax laws so that you can accurately calculate, file, and remit your sales tax liability.

9. Economic Nexus The Tax Is Already Due On Internet Sales
Marketplace Fairness Act
Require Remote Sellers to Collect & Remit
Simplify State Rules
Limit Audits
Small Seller Exemption

10. Questions? Ian S. Clyde National Director of Sales
(206) x 1089
© Copyright Avalara, 2014