3 Reasons Sales Tax Rate Tables Don't Add Up
Sales tax is complicated. And thanks to new regulations and laws, it’s getting even more complex.
When many businesses get started, they rely on sales tax rate tables to determine the appropriate sales tax rates to apply to their sales. But as businesses grow, many begin to realize sales tax rate tables don’t add up.
1. Tax rate tables are frequently out of date
Watch out! Such a lack of tax rate accuracy may lead to an unwanted audit. State, county, city and ZIP tax rates can change at any time. Don't rely on outdated rates.
2. Tax tables lack product taxibility information
Knowing a tax rate isn’t very helpful if you don’t know whether it applies to a given product. To avoid taxing tax exempt goods, consider a better way of managing tax rates.
3. Tax rate tables based on ZIP codes are not geographically precise.
Did you know there are more than 12,000 tax jurisdictions in the U.S. and addresses within the same zip code might be in different tax jurisdictions with different tax rates?
Download the guide on to see three reasons why it’s likely time to rethink the use of tax tablesin your business.
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