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Sales Tax Quality Process and the Manufacturer/Distributor

Originally published: May 2012
by Avalara, Inc.
Copyright © 2012
Reprinted with permission

Sales and Use Tax Challenges Facing Manufacturers and Distributors

In interviews with manufacturers, the following challenges were cited as the biggest struggles they face regarding sales and use tax:
  • Tracking thousands of SKU numbers that cross taxability rules or vary in taxability based on state
  • Getting the rates right and filing the reports correctly
  • Surviving an audit (which in this business is inevitable)
  • Keeping track of all the smaller jurisdictions and their special districts
  • Ensuring a seamless process that is auditable
  • Figuring out what is taxable and what isn’t
  • Tracking use tax