sales tax compliance within oracle e-business suite / jd edwards / peoplesoft
TRANSCRIPT
Sales Tax Compliance within Oracle E-Business Suite / JD Edwards / PeopleSoft
Christine MartinAvalara
Christine MartinChristine Martin has spent 25-plus years working in the sales and use tax space. She started her career at Marriott headquarters in Bethesda, Maryland and has been a tax manager at a large telephone company and Fortune 1000 paper manufacturer as well as Director of Compliance for the first sales tax compliance outsourcer for telecommunications tax.
Christine has been a frequent presenter at several industry events such as TEI, ACT, and Telestrategies. Currently she is a Sales Engineer with Avalara, the leader in sales tax management.
Who is Avalara?
• A Market Leader for a Decade
• Currently Over 1000 Employees (growing rapidly)
• Offices in Seattle, SoCal, Raleigh, Virginia, Harrisburg, Detroit, Houston, Green Bay, Atlanta, New Jersey
• 410% Growth in The Last 4 Years Alone
• 240+ Trade shows in 2014 – We Are Everywhere
• Huge Customer Satisfaction – Industry Low Churn
The State of Our States States are still recovering from the Great Recession In 2013, 31 states projected budget deficits totaling $55 billion NRF estimates $24 billion in sales taxes goes uncollected on the
Internet
Therefore As tax-collecting agents of the State(s), they are looking to your
business to find more money This increased focus creates compliance risk for you
Market Forces: State Budget Gaps
Why Sales Tax Matters to States
When general sales tax and selective sales tax are combined, sales tax makes up 47% of total state revenue
Source: US Census Bureau, 2012 Census of Governments: Finance – Survey of State Government Tax Collections at www.census.gov/govs/statetax
Total State Government Tax Collections by Category
Other taxes 3.9%
Corporation net income taxes 5.3%
Total license taxes 6.8%
Total selective sales taxes 16.6%
General sales and gross receipts taxes 30.5%
Property taxes 1.6%
Individual income taxes 35.3%
What Makes Sales Tax So Complex152M mailing addresses associated with taxing jurisdiction borders.
24,750 sales and use tax rates.
9,937,125 rules to determine the taxability of the product/service.
247,500 rules to determine the taxability of the buyer/seller.
CA
LC
UL
AT
ION
CO
MP
ON
EN
T
Geocoding
Situses
Rating
Exemptions based on nature of what is sold
Exemptions based on nature of the purchaser and how the
purchase will be used.
12,375 rules to determine which jurisdictions’ tax rates and types apply.
PLUS: 23+ sales tax holidaysThousands of changes each yearState-provided info that’s often missing, misleading, or wrongSourcing rules that differComplicated nexus rulesand this just covers North America!!!
Jurisdiction Complication
Product TaxabilityHoney Roasted Nuts are taxable in NJ, KY, MD and NY states, while…
Salted Nuts are exempt in those same states.
TaxableExempt
Cost of Manual Compliance
Source: Wakefield Research, July 2013
Average total cost for businesses to manage a sales tax audit
Average time spent filing sales tax returns and remitting payment
11 hours per week
Percentage of businesses that believe a sales tax auditor would find a mistake
Reduce Your Risk
Do a nexus studyStay up-to-date with rate,
rule, and boundary changesReport consumers’ use taxBe compliant from day oneAutomate with technology
An understanding of your filing requirements
Calculations that are rooftop accurate
Product taxability coverageDetailed sales recordsA process for managing exemption
certificates
You should: Make sure you have:
Avalara – R12 Integration Details
EBusinessTax
Avalara Standard R12 Interface
Service Oriented Architecture
Purchasing
Payables
Sales Orders
Receivables
PartiesParties
PlacesPlaces
ProductsProducts
ProcessesProcesses
Integration Setup
Integration
• Taxable Line
Tax Calculated on Order
• Non-Taxable Line
Tax Calculated on Order
Avalara Integration
Product and Service Mapping
Avalara Integration
Product and Service Mapping
