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[Howard Lazarus]

Has anyone set up multiple states in Navision, for sales tax? Additionally, some states require reporting down to the local jurisdiction, any experience there? Has anyone experienced non-home state audits? Thank you

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Howard Lazarus
Cook’s Direct Inc.
Warrenville IL
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[Martin Micheelsen]

Avalara can help you do sales tax correctly down to the GPS level and report it for you – at a substantial fee. 

We collect sales tax in CA, PA and TN and use the FastTax setup from Service Objects. It adds setup to Nav that uses the standard Nav functionality.  The codeunit for the quarterly rate updates is not std Nav but specific to FastTax. It is accurate at the ZIP code level at a tiny fraction of what Avalara charges.  Sometimes a Zip code covers addresses at different tax rates, so if 100% compliance is required, you will have to spend the big bucks. 

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Martin Micheelsen
Nav Project Manager
LD Products
Long Beach CA

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[Mathew Ealy]

I have done this both using base Nav function and using Avalara’s product AvaTax. If you  are looking to add one or two new locations, using base Nav applications is easy and free. If you need to calculate tax for a lot of states, counties or in some places even townships it might be easier to use a service like Avalara or CCH.

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Mathew Ealy
Nav Support Specialist
Rentokil N. America
Reading PA
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[Kristen Wiggins]

?We do multi-state collection/reporting.  It can be a huge job to get the set up.  Currently we collect for :
FL, GA, TN, AR, TX, OK, MS, LA, AL and are currently setting up MO.  Since so many state collect for local jurisdictions our set up reflects this.
A/R in their customer set up should look for the city first for all states no matter how the reporting goes.  Any laziness in this area will lead to incorrect reporting, especially when credits happen.
We have not had a non-home state audit since we began using NAV.

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Kristen Wiggins
Staff Accounting/Data Analyst
DOW Electronics
Tampa FL
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[Alistair Betts]

With our upgrade to NAV2016, we’ve started using NAV’s tax features – down to local tax jurisdiction when needed. We collect tax in pretty much every US state, and most Canadian States too.

We use Avalara’s reporting service to keep us informed of tax changes, which we manually apply to NAV. 

It requires some effort, but a lot less than doing all manually without using NAV.

I know we’ve been audited by international tax agencies (Canada). Not sure about local US agencies by can check for you if you like and put you in touch with out tax team?

Regards,

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Alistair Betts
Senior Business Analyst
Gogo, LLC.
Chicago IL
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[Andrea Riviezzo]

We did NAV previously, which include jurisdictions. There should be webinars on how to set it up on this site.

I would say, be careful if you drop ship and use exemption certificates, exemption numbers need to be on the Ship To Cards vs the Customer Card. Otherwise you might tax exempt a shipment that should not be.
 
It also requires someone being very diligent, the setup can be a little complex and you really need to stay on top of rates, exemption certs, how you link items/customers in NAV, etc. While setup is way easier than a 3rd party, there’s a lot more to sales (use and sellers use) tax than on the surface it appears to be.

Since we’re Nexus in a lot of states (20) and jurisdictions we opted for Avalara. I’m a big fan of theirs, but have heard good things about CCH. While NAV native is awesome for limited states, any more than 5 you’re probably in for a lot of work. With all the new “Use Tax Notice and Report” laws like RI Non-collecting “Retailers, Referrers, and Retail Sale Facilitator’s Act” – these are more simple to just collect and remit than the cost to either a) do the notice and report or b) deal with the fines to fail to do so ($10K per violation in RI). Sales tax is about to come to a whole new place, which could mean cost of compliance is going way up, NAV native probably does not have the base to sustain that level of compliance.

Also – we have been audited by CA a few times, that is not our home state. If you have sales tax audit questions feel free to email me/call me. I can probably give you a few best practices for managing the audit.

Thanks!

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Andrea Riviezzo
Inovonics
Louisville CO
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[Michael Heatherly]

When we were addressing Sales Tax issues on our NAV implementation AVALARA did not offer any solution that permitted support of a Sales Tax calculation that can change on an order to order basis.

CCH Sales Tax office at least had the dialogue and the infrastructure to support it.

Defense, during a sales tax audit starts with the Certificates , but you need the exempt reason codes reflected in your 
Bill to(s) Ship to(s) and an ability to alter that at  the order level. Certs need to be identified as being recurring or single purchase.

An auditor will generally allow you to obtain an updated certificate documenting the exempt sale. But, you need to be explicit on the exempt reason code, which will match the category selected on the exemption form.  In Illinois,  a sale that is Industrial Machinery and Equipment exempt needs to be supported by an ST 587 form on each order.  We added a feature to send that form out with the order acknowledgement when that exemption status was being claimed.

Tax issues vary depending on the business you operate in.

A wholesales distributor can sell to mechanical contractors that perform work for Industrial Businesses, and Governmental Units.  That taxability of a particular order can vary based on  the exempt or taxable nature of the end delivery point.

We file sales tax returns in IL, IN , IA, WI, MO , CA, TX and MI.

We recently hired a resident salesperson in KY, and added KY to our nexus.

Wolters Kluer STO “SALES TAX OFFICE” provided the ability to just add the State for a new nexus, all the links already are loaded in the Bill to and Ship to records.   When you add a new state,  your concern would than involve getting the certs to document the exempt status of your existing customer base. Previously those were out of state sales in interstate commerce, prior to having a resident sales person.

We did have to alter STO to permit visibility of the exempt reason codes at the Bill to Ship to and Order level.

If you operate in an environment with a Static Tax status, AVALARA might work, but I found no one in that organization 
would address our issues.

FASTAX was purchased a few years back by Thomson Reuters. It has a very comprehensive ZIP+ 4 sales tax rate
directory.  It provided the Tax Jurisdiction codes that made filing Texas sales tax returns very easy on line.

Our VAR never mentioned the existence of the FASTAX objects when we advised them we used FAXTAX for rates.

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Michael Heatherly
Lesman Instrument Company
BENSENVILLE IL
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