Espresso Services is a full-service importer and distributor of commercial espresso coffee equipment and related products and services. They have a diverse base of retail, dealer, and distributor customers. The company was experiencing challenges using the native tax tables in NetSuite to accurately calculate sales tax. The process required ongoing manual intervention, which was not handled by tax professionals, but by customer service and accounting staff.
Espresso Services sought an automated solution to accurately calculate tax based on customer, item, and jurisdiction variables—all while taking into account sales tax exemptions and special taxability in certain jurisdictions. They also wanted to reduce the workload involved in monthly sales tax returns.
With Vertex Cloud for NetSuite, Espresso Services was able to improve efficiency within their database by utilizing item and customer variables to get the true tax rate. And since Vertex continually updates the taxability rules and rates, they’re confident about tax rate updates when laws change.
What Espresso Services really wanted was a tax engine connected to its ERP, similar to those used by multinational enterprises, but flexible to its budget. Vertex Cloud Indirect Tax enabled them to assign items to product classes that can then be exempted at the customer level. For example, they can exempt retail customers from sales tax on food ingredients they are reselling to customers, but charge them tax on equipment being used in their business. Similarly, the company can now exempt a dealer from sales tax on equipment being resold to its customers, yet tax them on food ingredients being consumed within the business.
With Vertex Cloud, Espresso Services has been closing the month and setting up items and customers more quickly. The team no longer has to modify the taxability of certain items on sales orders—resulting in far fewer customers calling with sales tax questions and virtually eliminating the need to process sales tax credits. The solution was simple enough for non-tax staff to manage tax needs, and eliminated the need for IT staff to perform maintenance and hosting.
Overall, the company improved tax accuracy and reduced manual workload, allowing them to strengthen their focus on serving the foodservice industry with the highest quality equipment and aftermarket support.