Like many companies that deal primarily with distributors, Inovonics assumed its only nexus obligations were in states where employees were based. After completing a nexus study, the company learned they had obligations in 14 states in addition to the six they were already registered in.
It didn’t take long for them to realize that NAV, for all of its powerful benefits, was not the best tool for sales tax compliance. “You really have to stay on top of all your rates,” says Andrea Riviezzo, the company’s controller, “and you have to do all the filing yourself.”
On top of that, certificate management was still a complex problem. “If you have a drop shipment and you put the certificate ID on a customer card, it flows through to wherever they are drop shipping,” Andrea explains. “So, if they’re exempt in California but not in New Jersey, you’ve created issues there as well.”