I'd like to save money by not sending exempt sales to Avatax so that I can avoid getting charged for transactions that don't calculate tax, but this makes it so they aren't on reports which will cause my filings to be inaccurate in some states. What are my options?
The basic options here are listed below, the first option is preferred by far because it is automated.
- Send all transactions to Avatax, and identify exempt customers so no tax is charged. This option is automated and allows detailed reporting for potential audit situations.
- Import exempt sales in summary by state each month. This is not preferred because it doesn't give any detail about who the clients were that were exempt and what you sold to them. It is, however possible and some of our clients follow this practice.