Six surprising ways sales tax affects retailers
And what your product UPCs aren’t telling you
INSIGHT ARTICLE |
Sales tax is not among the top three priorities of most retailers. It may come as a surprise, however, that sales tax can impact what many retailers consider to be their top priorities: managing a predictable P&L, keeping staff focused on top-line activities-and fostering customer relationships. More precisely, errors in sales tax management can have a negative impact on these priorities. Reducing sales tax risk exposure and eliminating inefficiency should be a priority of retailers today.
In this article, Avalara explains six common sales tax errors of retail businesses:
- Treating products as taxable when they are not
- Sales tax holidays gone wrong
- Categorizing–and miscategorizing–products
- Forgetting to create an audit trail
- Using yesterday's rules for today's transactions
- Not using existing infrastructure to address sales tax compliance
Understanding and correcting these common errors can create refund opportunities. Implementing improved processes for sales tax management can help mitigate risk and allow retailers to confidently maintain focus on strategic business priorities.
Download Avalara's "6 Surprising ways sales tax affects retailers."
© Avalara. Reprinted with permission. RSM disclaimers of warranty.