How to Ensure Tax Exemption Certificate Compliance - aftermarketNews

How to Ensure Tax Exemption Certificate Compliance

Sponsored by Avalara

According to a 2014 Wakefield Research Report, 48% of U.S. accounting professionals believe an auditor would likely find mistakes, such as missing or incorrect compliance documents, during an audit. Are you part of this 48%? Wholesalers, distributors, resellers and retailers tend to experience the most audit pain with managing exemption certificates often due to the complexities of nexus. When a buyer isn’t the end-user, and is therefore exempt from paying sales tax on a transaction, the seller is required to collect a valid tax exemption certificate and must have that document on file if and when an auditor shows up.

Collecting these certificates may seem simple enough, but with states requiring different forms on different types of transactions, certificates regularly expiring, and your business hopefully growing your customer base, how do you know if all of your exemption and reseller certificates are not just on file, but up-to-date? With the average cost of an audit coming in at over $114,000 and states increasingly hiring tax auditors to make up for budget deficits, the financial status of your business could be on the line.

Becoming more informed about the rules and regulations around exemption certificate compliance today will provide your business with security in the future. To learn more, download Avalara’s Ultimate Guide to Exemption Certificates for Sales Tax Compliance.

You May Also Like

Warn Your Customers About Water Pump Failure During the Summer

Summer is an opportune time for automotive professionals to remind customers to keep an eye on the signs of a failing water pump. As you know, extreme summer temperatures and added strain on vehicles from activities like long road trips can cause engines to become more susceptible to troubles from excessive heat, making the function

Summer is an opportune time for automotive professionals to remind customers to keep an eye on the signs of a failing water pump.

As you know, extreme summer temperatures and added strain on vehicles from activities like long road trips can cause engines to become more susceptible to troubles from excessive heat, making the function of the water pump even more critical.

Going the Extra Mile(s) with Iridium Spark Plugs

Advanced spark plugs designed to improve fuel efficiency in today’s engines Helping customers choose the right spark plugs is more important than ever. When it comes to late model vehicles in particular, shop owners and technicians understand that improvements in spark plug design, metallurgy and technology can help maximize the performance and fuel efficiency of

SRX Series a Natural Fit for FRAM®

When giants in the auto racing world team up with successful, resourceful business partners, you form a recipe for success. In this case, the result is the Superstar Racing Experience (SRX) Series. The SRX Series, otherwise known as the Camping World SRX Series, is the brainchild of racing legends Tony Stewart and company. Taking some

Keep Drivers Comfortable with Airborne Contaminant Control

Oil changes are one of the first projects that DIYers and experienced automotive pros learn how to perform. This maintenance task is vital to vehicle performance, relatively easy to do and performed at regular intervals, so most customers understand its importance. All drivers need to stay on top of oil changes, especially with more cars

The Importance of Proper Spark Plug Torquing

Whenever you install new spark plugs in your vehicle’s engine, there are some crucial considerations to keep in mind. For those who have installed plugs before, proper plug gapping usually comes to mind first. But another important factor in getting the most out of a new set of spark plugs is to precisely torque them

Other Posts

FRAM® Protects Engine Performance and Passenger Comfort

The first FRAM® product that comes to mind for many automotive enthusiasts are oil filters. More than eight decades of dependable engine protection has garnered a strong reputation for these products among technicians, service writers, shop owners and DIYers, but FRAM® has a full line of engine air and cabin air filters to cover even

OE CV Axle Trends for Today’s More Demanding Drivetrains

Today’s vehicle drivetrain systems are far more complex and powerful than ever before. So, you want to make sure you choose a replacement axle that matches the original OE design attributes to ensure proper performance and durability. Avoid installing an inferior axle based on price only, that may not perform properly or worse yet, fail

FUEL TANK CLEANING CAN EXTEND THE LIFE A FUEL PUMP

A proper cleaning of a fuel tank can ensure that potentially harmful materials don’t get into your engine and cause damage. Routine maintenance will also prevent fuel lines from clogging and can extend the life of the fuel pump. If your vehicle has been idle for a long time or is not running smoothly, it

The Importance of Changing Cabin Air Filters for the Winter

Keep the air in the cabin clean and the warm air flowing freely When it comes to performing preventative maintenance on your vehicle, filtration is a great place to start. At first, you may think about performing regular oil changes, along with replacing engine oil and air filters. Another component that protects critical spaces –