Historically, use taxes have flown under the radar of most tax auditors. Now, with states coming under increased pressure to raise revenues, the consumer use tax is fast becoming a target of closer scrutiny. This trend presents a special challenge to corporate tax departments:
- Your vendors may charge you inaccurate use taxes or no tax at all
- Decisions that determine "what is" and "what is not" taxable are often made outside the corporate tax department by untrained personnel.
Difficult hurdles for those responsible for consumer use tax compliance.
Vertex Consumer Use Tax will not only automate this complex activity, but will also centralize the process and bring all decisions for sales and use tax determination under the control of the tax department where it belongs.
Benefits of Vertex Consumer Use Tax
- Greater Operational Efficiency: Vertex® Consumer Use Tax O Series® will significantly reduce the time and resources spent managing the complex tasks associated with sales use tax compliance by exclusively handling the special situations unique to use tax, from procurement through payment to suppliers.
- Cost Savings from Several Sources: You will substantially reduce audit assessments and penalties as well as reduce overpayments by the automatic identification of exempt and non-taxable purchases
- Smoother Audits with More Favorable Outcomes: An automated approach to consumer use tax provides a taxability blueprint that auditors use to evaluate the accuracy of the methodology behind the system before the detailed audit fieldwork starts, potentially reducing the scope of the audit itself.
- A More Productive Tax Department: A systematic approach to the calculation of consumer use taxes improves morale and the performance of over-burdened accounting and tax professionals who will be able to focus on more fulfilling and value-added activities.
Features of Vertex Consumer Use Tax
- Taxability Drivers that Identify Exempt and Non-taxable Purchases: Determines which items are exempt from sales and use tax based on the characteristics of the goods or services purchased; and, uses of the items within your organization.
- Open Flexible Infrastructure: The O Series line of products use the latest technology including Java, Java Server Pages, HTML, XML, and SOAP which allow the products to run in a web services environment with platform independence.
- Database Agnostic: All major databases can be accessed via JDBC, including Oracle, UDB, and Microsoft SQL Server.
- Easy Integration with your ERP: Vertex tax software solutions integrate with all leading ERP systems including SAP, Oracle, PeopleSoft, JD Edwards and others to yield faster, less costly implementation, and easier maintenance.
- Improved Accuracy: With Vertex as your partner, you have access to not only the 8,000 taxing jurisdictions (including county, city, and district US jurisdictions) that come with the system, but also monthly updates supplied by Vertex's accredited research professionals.
- Security and Audit Log: With controlled access through role-based security, you can be assured that your tax management processes are in compliance with Sarbanes-Oxley requirements.
Additional Consumer Use Tax Resources
- Webcast: Explore the best strategies and systems for managing Consumer Use Tax Compliance (Registration Required)
- Webcast: Calculate the impact of consumer use tax errors on your bottom line (Registration Required)
- White Paper: Learn how automation and improved control can save your company millions