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Managing Sales Tax Exemptions

During the Rise of Economic Nexus

White Paper

Managing Exempt Sales During the Rise of Economic Nexus

Economic NEXUS laws demand businesses pay close attention to sales tax exemption certificate management

If you sell products or services that are exempt from sales tax, your compliance challenges and audit risk can be more complex and burdensome. In the event of an audit, you must prove that your exempt sales are backed by valid documentation. If not, you’ll be assessed audit fines and penalties. Achieving complete compliance is only possible if you understand how to properly collect and maintain exemption certificates to support your company’s sales process.

In 2018, the world of sales taxability and compliance was shaken by the new economic nexus standard after the Supreme Court of the United States ruled on “South Dakota v. Wayfair, Inc.” This ruling continues to have a dramatic impact as it expands nexus obligations for many remote sellers; more nexus obligations leads to more registrations, more tax collections and remittance, and more exemption certificate requirements. This change affects Made2Manage® (M2M®) and Intuitive ERP® users.

Download the document and learn how economic nexus may impact your exempt sales and overall sales tax compliance picture, what details require special attention, and how to evaluate your supply chain and drop shipping relationships to understand how they influence new tax obligations.

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