Expand Your Business with Peace of Mind
In most states, sales and use taxes are imposed on the sale of all tangible personal property and certain specified services unless specifically exempt from this tax under state law. When it comes to sales and use tax for manufacturers and distributors, full and partial exemptions are especially important to apply and keep track of.
Exemptions to sales and use taxes bring additional complexity to compliance. They can be expressed in several ways: explicitly, e.g., items considered a part of the manufacturing process; as exceptions to the definition of a taxable sale of tangible personal property; or as exclusions from a taxable category of transactions.
As a tax manager at a manufacturing business or distributor, it’s critical to understand the nature of all transactions, apply tax rates and rules appropriately, and keep an audit trail to avoid or reduce penalties, interest, and assessments. Keeping records and proper management of exemption certificates are crucial when a sales tax auditor comes knocking. The auditor needs your records to help understand your business for the audit and as proof that you have complied with the law.
CCH SureTax has you covered every step of the way. The end-to-end sales and use tax automation platform is the dependable, configurable, and scalable solution to meet your specific business needs. While more and more businesses in the manufacturing and distribution industry are facing a sales and use tax audit, you will have a proper audit defense with a single source of truth, including exemption certificate management. With CCH SureTax taking care of your sales and use tax matters, you can grow your business with confidence.
Make CCH® SureTax® Your Solution!