Moderated by Kate, Financial Technology Consultant at Hyperbots
Kate: Hello, everyone. My name is Kate. And I’m a financial technology advisor here at Hyperbots today. I’m delighted to have Jon Naseath with me. Hey, Jon, how are you doing?
Jon Naseath: Hey, Doing Good thanks.
Kate: That’s great. So a little bit about Jon, he is the COO at Canto Capital, Inc. Today Jon and I will be discussing sales tax computation and transaction dates. So let’s dive right in. Coming to the first question, which date is generally used to determine the applicable sales tax rate on a purchase and why?
Jon Naseath: Yeah, when you, when I saw the topics for today, the question of like some could say, “Well, who cares?” But let me tell you why we care a little bit first. Sales tax actually especially coming into the year-end, or whenever your year-end is, depending on the date of what you recognize as the sales tax rate, and which rate’s going to be applied, can be different one year to the next. And so, you know, are you trying to? In some ways, it could be manipulated. If you’re trying to push it out to be a certain date or pull it in to be a certain date recognizing what date is required for tax is critical for sales transactions. So the answer is that most commonly what you’d use for tax requirements is the invoice date.
Kate: And so again to say, the invoice date. That’s different than revenue recognition rules in most cases.
Jon Naseath: And so the date is typically used by tax authorities as the official date for recording the sale. Confirming that the buyer’s obligation to pay is engaged. That’s really when there’s viewed as an agreement locked in for the first time. When that’s established, they want to use it for tax purposes as a transaction. So just to clarify if the invoice date is October 15th, even if the shipment happens later, say, for Black Friday happens later, October 15th is the date that you’re going to determine the sales tax rate, not other dates.
Kate: That makes a lot of sense. Moving on, why isn’t the shipment date usually used to determine sales tax?
Jon Naseath: Yeah. And then the shipment date is usually a key one for revenue recognition. You know, everyone’s focused on, do you get this product shipped out before, in this case, the quarter-end or the New Year fiscal cut-over. But yeah, for tax purposes, this is again where you have kind of different accounting rules for tax versus for accrual accounting. For tax purposes, it really is the invoice date, not the shipment date. The main reason is that while the shipment date reflects when the goods are sent, it’s not regarded as the final point of sale for tax purposes. And so most tax authorities, again, would focus on the invoice date because it signifies the completion of terms. That’s when you’re now ready to, the work’s been done. It’s confirmed that you’re ready to be paid, and the tax wants their money when you invoice.
Also, tax authorities do so again. If the goods are shipped on November 20th, right before Thanksgiving, but are invoiced on November 15th, the November 15th date is when you’d apply the tax rate or recognize it for tax purposes.
Kate: Completely agree with you, Jon. So could the date of receipt ever influence sales tax calculations, or is it mostly irrelevant?
Jon Naseath: Well, the beauty of accounting is you talk about “ever” or “always.” You know, those absolute terms. There might be scenarios, and you have to be open to that, to figure it out with your technical accounting rules. But generally, and mostly relevant, would be the date of receipt isn’t applicable for tax calculations. Again, the tax is typically based on the finalized sale, which is captured by the invoice date. There are unique situations where payment of tax obligations is contingent on receiving goods. So people can get creative in how they set up their contract terms, and there’s always exceptions or contingencies. So in that example, the receipt date might play a role. But it’s rare and certainly wouldn’t be a standard tax calculation.
Kate: That is a very interesting point. Coming to the next question, why is the payment date generally not considered for determining sales tax rates?
Jon Naseath: Yeah, same thing. And my blunt answer is, the payment date can be manipulated. If you’re trying to, and tax authorities don’t like being manipulated. They want a locked-in consistent number that they can rely on, not whenever you do get paid. If you happen to get paid, like if you don’t get paid, if the payment date never happens or is stretched out over long periods of time, and they pay chunks over time, it just gets too complicated. So the payment date isn’t reliable. It’s not relevant for sales tax obligations. Taxes are, I know this sounds complicated because it’s unique, different from revenue recognition rules, but taxes are usually actually simpler, and they want simpler black-and-white rules. So the sales tax is calculated and remitted based on the invoice date, regardless of when the payment occurs. Also, just to recap. It’s not the shipment date. It’s not the payment date. Invoice date.
Kate: Understood. Are there any exceptions where a date other than the invoice date might determine sales tax applicability?
Jon Naseath: Again, with accounting, there’s always going to be exceptions, and that’s really where the art of accounting comes into play. You just have to get your tax authority on board. So really, it’s whatever the tax authority says is going to be the date. There might be some local exceptions in a local jurisdiction or something, but it would be rare, just depending on what country you’re in or what state you’re in. In those examples, shipment or receipt date could be used. We mentioned it as a contingency before any exceptions would be specific, based on unique requirements. Particular state tax rules, perhaps, but those are uncommon. I remember when there were exceptions for buying things online, and so were lots of companies because there weren’t many online sales happening. That’s really been locked down now. So where there are exceptions, I wouldn’t expect them to last very long. Do what your tax authorities tell you. Do what your tax accountant advisor tells you to do. Do not rely on this video for your tax advice.
Kate: Yes, you’re right. We have almost reached the end of our discussion today. So to wrap things up with our final question, can you summarize why the invoice date is the primary date for determining sales tax?
Jon Naseath: Sure. It’s the most clear locked-in trigger when you know the work has been performed, and there’s an expectation of money coming, so that agreement to be paid is confirmed. It’s evidence of confirmation that money is due, and the government wants their money. They want their piece of the pie. It marks the official sales transaction confirming the buyer’s obligation to pay. It’s one that isn’t manipulated, and tax authorities see that as a kind of clear signal, black-and-white trigger, as a finalized point of sale, making it reliable for tax calculations. So again, just another example, you know, an item is invoiced December 1st but is shipped December 5th just in time for Christmas. They might not pay for something until January. That’s when you might get paid for it later, and that’s common. But the government doesn’t want to wait until the next tax season. They want their money in this example in December. They want it specifically based on when it was invoiced to reflect the completion and legal obligation of the sale. The key call-out here is the reason we’re kind of harping on this point about the invoice date is that it’s usually different than revenue recognition dates. It’s not when the services are completed because that might be the shipment date, for example. It’s the invoice date.
Kate: That was really impressive and insightful, Jon. So with this, we have come to the end of our discussion. Thank you so much, Jon, for joining us today and sharing your insights, and a very big thanks to our listeners. I will see you soon. Goodbye, and have a great day ahead.
Jon Naseath: Thank you.
Moderated by Srishti, Digital Transformation Consultant at Hyperbots
Srishti: Hello, everyone! My name is Srishti Rajp, and I am a digital transformation consultant at Hyperbots. Today, I’m delighted to have Shaun Walker as my guest. Thank you so much, Shaun, for taking out the time today.
Shaun Walker: Absolutely, thanks for having me.
Srishti: Of course, so a little bit about Shaun. He is a Sox compliance manager at Norfolk, Southern, and today we will be discussing Connecticut sales and use tax compliance. Whenever you’re ready, we can get started. On to the first question: Could you provide an overview of Connecticut sales, tax, and use tax rates? How do these rates differ across goods and services?
Shaun Walker: Yeah. Connecticut has a base state tax rate of 6.35%. But there’s some variation. For general merchandise, 6.35% is the expected rate. Luxury goods, such as jewelry over $5,000 or cars over $50,000, are taxed at a higher rate of 7.75%. Prepared foods, like restaurant meals, are taxed at 7.35%.
Srishti: Makes sense. Are there any exemptions to this?
Shaun Walker: Some items like prescription drugs and medical equipment are exempt. This structure simplifies tax applications but requires specific knowledge of tax categories and exemptions.
Srishti: I see. Now to the next question: What are some challenges or complexities that Connecticut businesses face due to state sales tax rules, given the lack of local variations?
Shaun Walker: For example, with luxury and prepared goods, you have to differentiate between standard and higher tax items, such as applying the 7.75% rate for luxury goods and the 7.35% rate for prepared food. It requires precise categorization. Service taxation adds complexity as certain services, like maintenance repairs and digital services, are taxable. Also, exemptions require accurate classification—for instance, food for home consumption is exempt, while prepared food for immediate consumption is not.
Srishti: Understood. How frequently do Connecticut sales tax rates or rules change? How can businesses stay updated?
Shaun Walker: They’ve been relatively stable, but changes do occur, particularly for specific goods or services. Connecticut recently expanded tax applicability to certain digital and remote services. Businesses often need to track updates in legislation that may impact specific categories. The Connecticut Department of Revenue Services (DRS) is the main source for updates, and many businesses use tax compliance tools that provide real-time alerts.
Srishti: I see. What are some of the primary resources available to businesses to stay informed about sales and use tax changes in Connecticut?
Shaun Walker: There are three main resources:
Srishti: Understood. What challenges do companies face when managing compliance with Connecticut sales and use taxes? Could you share some examples?
Shaun Walker: One challenge is handling multiple tax rates. For example, selling a car over $50,000 incurs a 7.75% tax rate, while other items are taxed at the base rate of 6.35%. Applying tax to certain services, like digital products, can be complex. Lastly, managing exemptions, such as prescription drugs, requires accurate tracking for proper reporting.
Srishti: That’s interesting. Since AI is such a big buzzword today, how can artificial intelligence help businesses manage sales and use tax compliance more efficiently, especially within Connecticut’s unique tax categories and exemptions?
Shaun Walker: AI can automate rate applications, determine taxability, and manage exemptions. For instance, Hyperbots AI automates the categorization and application of Connecticut’s tax rates, helping businesses streamline compliance and minimize errors.
Srishti: Makes sense. How can AI support companies during audits for sales and use tax compliance in Connecticut?
Shaun Walker: AI helps with efficient document retrieval by categorizing and retrieving records by transaction type. It also aids in error detection and correction by analyzing past transactions for misclassified goods or services, allowing businesses to address issues before audits.
Srishti: That’s really helpful. What do you see as the future role of AI in handling Connecticut sales and use tax compliance?
Shaun Walker: AI will likely expand beyond compliance to provide deeper insights and planning capabilities. Predictive analytics can forecast the impact of tax changes on revenue. Real-time compliance dashboards and proactive alerts about regulatory changes will become standard. Hyperbots, for example, offer real-time compliance, predictive analytics, and proactive insights for better financial planning.
Srishti: Thank you so much for sharing your insights, Shaun. This was extremely helpful. That brings us to the end of today’s discussion. Big thanks to our viewers! I’ll see you around. Have a good one. Bye-bye.
Shaun Walker: All right, see you later.
Moderated by Srishti, Digital Transformation Consultant at Hyperbots
Srishti: Hello, everyone! My name is Srishti Rajvir, and I’m a digital transformation consultant at Hyperbots today. I’m delighted to have Dave Sackett as my guest. Thank you so much for taking the time, Dave.
Dave Sackett: Yeah. Thanks, Srishti.
Srishti: So a little bit about Dave for our viewers. He is the VP of Finance at Persimmon Technologies, and today we will be discussing the Massachusetts sales tax system. So whenever you’re ready, Dave, we can get started.
Dave Sackett: Okay, sounds good. I’m ready.
Srishti: Alright, to start with, could you explain how Massachusetts’ sales tax system stands out, especially in terms of the rates and the products that are taxable?
Dave Sackett: Sure, Massachusetts has a statewide sales tax rate of 6.25% on most goods and services. This is relatively straightforward, but there are some exceptions. For example, there’s tangible personal property that’s taxable, while food and clothing are generally exempt. Prepared food, like meals in restaurants and hot food sold in grocery stores, is taxable. It’s important for businesses to understand these distinctions to avoid errors when they file their taxes.
Srishti: That’s helpful. Speaking of exemptions, could you provide some specific examples of goods or services that are exempt from sales tax in Massachusetts?
Dave Sackett: Yeah, sure. Certain goods and services are exempt from sales tax, including clothing, most food items, and prescription drugs. For example, if you buy a pair of jeans or a sweater, it won’t be taxed. However, if you dine at a restaurant or buy food outside, that is taxed at the 6.25% rate. Another example is prescription medications. These are exempt, but over-the-counter drugs, vitamins, and cold medicines—you’ll be paying tax on those.
Srishti: That sounds like businesses really need to stay on top of the details to remain compliant. So what challenges do businesses face in handling sales tax with these exemptions and different rates, especially those with multiple locations?
Dave Sackett: Yeah, there is complexity in applying the correct tax rates, especially when dealing with exemptions. One of the biggest challenges is knowing whether something is taxable or not. Businesses that operate across municipalities face additional complications, as some localities impose their own taxes on top of the state rate. Tracking which items are taxable or exempt requires a system. For example, differentiating between grocery store food and prepared meals—a grocery store might sell both a cold salad, which is exempt, and a hot meal, which is taxable. Distinguishing between these two for every transaction requires a tool.
Srishti: I see. How frequently do Massachusetts sales tax rates or exemptions change, and what strategies do businesses use to keep up with these updates?
Dave Sackett: Massachusetts generally has a stable tax rate, but exemptions can change. It’s politically driven in some cases, and there are occasional updates to the regulations. For example, changes can occur in the types of food services that are exempt from sales tax. Companies need to monitor updates from the Massachusetts Department of Revenue to ensure compliance with any changes in the laws. Having an automated system that can track these changes and apply them across transactions is a super helpful tool. For instance, if a state changes its policy on sales tax exemption for certain food items, businesses would need to update their point-of-sale system immediately to reflect that change and ensure they’re collecting the correct tax.
Srishti: Understood. And in your experience, how can AI and automation help businesses maintain compliance with Massachusetts’ sales tax rules?
Dave Sackett: AI and automation can play a huge role in improving efficiency and accuracy in tracking sales tax. AI can automatically determine the correct tax rate for transactions based on the customer’s location, the product type, and whether it’s taxable or exempt.
Srishti: Additionally…
Dave Sackett: There are AI tools to keep track of regulatory changes, ensuring businesses update their systems whenever tax rates or exemption rules change. If Massachusetts were to modify the taxability of certain digital products, AI could update the system instantly to reflect the new rule, ensuring businesses don’t miss it.
Srishti: Understood. Can you share a specific example of how AI has helped a business navigate Massachusetts’ sales tax rules?
Dave Sackett: Yes. A company that sells both tangible goods and prepared food had issues ensuring the correct sales tax was applied at checkout, especially when operating in multiple regions. With AI automation, the system is now automatically classifying food items as either taxable or exempt based on the preparation method. For example, a customer buying a cold sandwich from a deli would pay no tax, but a hot sandwich would be taxed. AI in the background ensures the correct tax is applied each time. This streamlined the process, reducing manual effort and errors.
Srishti: That’s an amazing example. Now, when businesses have to handle multiple exemptions or taxability rules, how can they streamline their processes to avoid errors?
Dave Sackett: To avoid errors, businesses need correct classifications and automated tracking of tax. AI can help by instantly classifying products at the point of sale and ensuring the correct tax rate is applied to each transaction. Businesses should also invest in systems that integrate directly with the state tax authority for updates. For example, if Massachusetts changes the definition of prepared food or creates new exemptions, the system should automatically update without manual intervention by the finance team.
Srishti: Understood, and this is really helpful. That brings me to the last question: what advice would you offer to businesses finding it difficult to keep up with sales tax rules in Massachusetts?
Dave Sackett: My advice would be to implement a reliable sales tax automation solution that uses AI. These tools can handle complex calculations, track changes in regulations, and apply the right tax rate in every situation. Staying informed is critical, so combining automation with a proactive approach to monitoring state regulations will reduce the risk of non-compliance. Also, maintain a strong relationship with your tax advisor to ensure your business stays on top of Massachusetts-specific rules. Additionally, businesses must consider not just sales tax but also Massachusetts use tax on items they buy and use in the business.
Srishti: Understood. Thank you so much for sharing your expertise today. It has been really insightful. I’m sure our audience will find these tips very helpful. That brings us to the end of our discussion. Thank you so much, Dave, for being a part of this.
Dave Sackett: Yeah. Thank you. Happy to help.
Srishti: Of course. Thank you so much, and to our viewers, we’ll stay connected and see you next time. Bye-bye. Have a good one!
Moderated by Kate, Financial Technology advisor at Hyperbots
Kate: Hello, everyone! My name is Kate, and I’m a financial technology advisor here at Hyperbots. Today, I’m thrilled to have Shaun Walker as my guest. Hey, Shaun, how are you doing today?
Shaun Walker: Doing good. How are you?
Kate: I’m doing great. Thank you so much for joining us today. So a little bit about Shaun, he’s the Sox compliance manager at Northrock Southern, and today we will be discussing managing sales and use taxes from sellers’ and buyers’ perspectives. So let’s jump right in.
Shaun Walker: Okay.
Kate: So, coming to the first question, could you give us an overview of the types of sales and use taxes that businesses need to consider in the United States?
Shaun Walker: Certainly. So there’s several types of sales and use taxes, and they vary by jurisdiction. At the broadest level, you have the state sales tax, which is set by each state. Many states allow county and city sales tax to add to the state rate. In some areas, there are transit taxes to fund public transportation. There are special purpose taxes for projects, and there are district taxes for supporting schools or other initiatives. Certain products like alcohol or tobacco are subject to excise tax. There have also been decisions about how to collect remote sales tax. And then there’s the use tax for items bought out of state but used in-state. The last one would be a digital sales tax that applies to online services like software and media subscriptions.
Kate: Okay, understood. Moving on from a seller’s perspective, how should a business determine whether they have a legal obligation or nexus to collect sales tax?
Shaun Walker: Well, nexus can be complex because it’s based on physical and economic presence. Physical presence can mean having a warehouse, office, or employees in a state, while economic presence involves reaching a specific level of sales in a state. Most states set a threshold, often $100,000 in sales or 200 transactions annually, which creates economic nexus.
Kate: Makes sense. So, Shaun, once a seller has determined nexus, how do they handle the collection and remittance of sales taxes?
Shaun Walker: Once a seller has nexus, they must register in each relevant state or local jurisdiction. They need to apply the correct tax rate to sales, which can vary within states due to local add-ons. There’s also automated tax software like Avalara or TaxJar that helps sellers keep rates accurate.
Kate: I understand. So for buyers, when does use tax come into play, and how should they handle it?
Shaun Walker: Use tax applies when a buyer purchases goods from an out-of-state seller who didn’t collect sales tax. It’s the buyer’s responsibility to report and remit the use tax in their home state. This often occurs when a business buys from a small out-of-state vendor or an online seller without nexus in the buyer’s state.
Kate: Makes sense. So, coming to the next question, what are some common mistakes businesses make when managing sales and use taxes? And how can they avoid them?
Shaun Walker: Common mistakes include failing to correctly determine nexus, underestimating the complexity of multi-jurisdictional tax rates, and not keeping exemption certificates. Businesses can avoid these pitfalls by regularly reviewing nexus in each jurisdiction, using tax software for rate accuracy, and maintaining exemption documentation. Frequent audits also help catch errors early.
Kate: That is a very interesting point. Coming to an even more interesting question, how can AI play a role in improving the management of sales and use of taxes for businesses?
Shaun Walker: AI can streamline the sales and use tax process in several ways. AI tools can automatically determine tax rates based on location, identify nexus patterns through sales data analysis, and flag transactions with potential tax discrepancies. AI also simplifies audits by quickly scanning transaction records and identifying anomalies, ensuring compliance with regional tax codes.
Kate: I completely agree with you. So how should businesses handle sales tax exemptions, and what documentation is required to support these exemptions?
Shaun Walker: Businesses need to collect exemption certificates for any sales-tax-exempt transactions. Buyers, like resellers or nonprofits, provide these certificates to show eligibility. Sellers should keep these documents on file to ensure they’re current and complete. Some states require renewals periodically, so it’s important to validate these certificates for legitimacy.
Kate: I couldn’t agree more with you, Shawn, on this. We have reached almost the end of our discussion today. Finally, from a buyer’s perspective, what should companies consider when purchasing from out-of-state or foreign sellers to ensure compliance with sales and use tax laws?
Shaun Walker: Buyers should confirm whether the seller will collect the sales tax, as some out-of-state or foreign vendors may not. If the sales tax isn’t collected, the buyer must record the purchase and remit use tax to their state. For larger or recurring purchases, it may be worthwhile to establish a formal process to track use tax obligations and ensure all necessary taxes are paid correctly.
Kate: That is a very unique point. I totally agree with you, Shawn.
With that, we have come to an end to today’s discussion on managing sales and using taxes from sellers’ and buyers’ perspectives. Thank you so much, Shaun, for joining us today and sharing your insights, and a big thanks to our listeners as well.
Kate: I’ll see you around. Have a great day ahead.
Shaun Walker: Alright, take care!
Kate: Yeah, bye.
Shaun Walker: Bye.
Moderated by Sherry, Financial Technology Advisor at Hyperbots
Sherry: Hello, and welcome to all our viewers on CFO Insights. I am Shelly, a financial technology consultant here at Hyperbots. And I’m very excited to have Jon Nassith here with me, who is an accomplished executive with expertise in AI, machine learning, and computer vision driving impactful technology solutions in education, healthcare, and business. Thank you so much for joining us today, Jon. We’ll be discussing a very niche topic today, which is Arizona sales and use tax compliance. To get us started with the interview, could you provide an overview of Arizona’s state sales and use tax rates? How do these rates differ across goods and services?
Jon Naseath: Yeah, absolutely. Arizona does something unique. Like other states, they have their own way of treating it. As opposed to just traditional sales tax, which is based on sales, and the consumer pays them when the sale happens, it really puts the burden of paying the transaction back on the business. They call it a transaction privilege tax. One of the main differences is where the burden sits. The practical outcome for the consumer may feel the same, but businesses embed that TPT, that transaction privilege pricing, into the price. You don’t usually see it as an additional line item when you’re doing local sales, even though the prices are higher. These transactional privilege taxes can be on general merchandise and on things like contracting services or leases. Really, anything the business is doing can have the transaction privilege tax. There are some exemptions and caveats. Like any other good tax policy, it’s complicated but generally, the shift is from the consumer to the business, having to pay the tax.
Sherry: To add to your answer, could you also discuss some of the jurisdictions in Arizona with notably high or low TPT rates? How does this affect businesses?
Jon Naseath: Sure, so just one more layer of complication. As opposed to having a generic fee for the different taxes across the state, they have different rates for the different cities within Arizona. As an example, if you’re in Phoenix or Tucson, they could have a rate that exceeds 8.6%. Phoenix’s overall TPT rate could be 8.3%. Other rural areas around Arizona could be closer to 6%. Where you’re doing business in Arizona as a business could impact the rate you have to pay for services or leases you’re providing. Doing business in the low-tax areas can potentially attract more customers and more companies wanting to operate there.
Sherry: How often do these TPT rates change in Arizona? How do businesses keep up with these updates?
Jon Naseath: They usually change with each fiscal year or tax season. So, it’s annually at the state level. However, local jurisdictions, like Maricopa County or Pima County, can adjust their rates more frequently based on budget adjustments or economic initiatives.
Some areas have seen rates that support infrastructure projects. Businesses often rely on local government websites or third-party tax software to track these changes, but it’s constantly changing throughout the state.
Sherry: What are some primary resources available to businesses to stay informed about sales and use tax changes in Arizona?
Jon Naseath: The typical resources include the Arizona Department of Revenue, which is the primary source for TPT rates, guidelines, and updates. They also have transaction privilege tax lookup tools. The Department of Revenue website includes tools you can use to look up rates by city, state, or zip code. Other compliance solutions like Avalara or the Sales Tax Handbook provide alerts and updates.
Sherry: What challenges do companies face when managing compliance with Arizona’s sales and use tax rules? Could you share some examples?
Jon Naseath: Sure. The complexity of the rate structure is a big challenge. It changes by jurisdiction, and businesses need to apply the correct combined rate accurately. For example, a company operating in Phoenix at 8.3% and Mesa at 8.05% must adjust based on their activities and locations. Rates change frequently, and temporary rates may apply for specific projects. Additionally, figuring out what activities require taxes can be challenging—it’s not just sales transactions. It could be something like a lease on a building.
Sherry: Since AI is revolutionizing the finance industry, how can artificial intelligence help businesses manage sales and use tax compliance more efficiently, especially with Arizona’s complex TPT structure?
Jon Naseath: First, I should say I’m not a tax advisor, and I recommend everyone watching consult their tax specialist. Neither is your AI. AI can help provide information, but you shouldn’t rely solely on it. AI can assist with automated rate updates, geolocation for rate applications, monitoring and adjusting for changes and minimizing errors. It can pull data from various databases and local websites to keep businesses informed.
Sherry: How can AI support companies during audits for sales and use tax compliance in Arizona?
Jon Naseath: AI tools like Hyperbots can assist during audits by providing efficient document retrieval and error detection. They can help quickly organize and present the required data to auditors. Having an AI assistant during an audit streamlines the process, allowing businesses to focus on presenting accurate information rather than manually searching for it.
Sherry: What do you see as the future role of AI in handling Arizona’s TPT compliance?
Jon Naseath: I don’t think the complexity will change, but AI will continue to help businesses handle it more efficiently. I see it expanding to include predictive analysis of costs, real-time compliance dashboards, proactive compliance alerts, and more.
AI will allow businesses to focus their resources on strategic goals rather than manual tax compliance.
Sherry: It’s been great speaking with you today, Jon, and learning more about Arizona sales and use tax compliance. Thank you so much for indulging us in these conversations and being as insightful as you always are.
Jon Naseath: Pleasure.
Moderated by Srishti, Digital Transformation Consultant at Hyperbots
Srishti: Hello, everyone! My name is Shrishi Rajvir, and I am a digital transformation consultant at Hyperbots today. I’m delighted to have Claudia Mahia as my guest. Thank you so much for your time, Claudia.
Claudia Mejia: Hello, Tristi! Nice to meet you.
Srishti: Nice to meet you as well. A little bit about Claudia for our viewers. She is the managing director at Ikigai Edge, and today we will be discussing Delaware sales and use tax compliance. So let’s begin. To start off with, Claudia, we can start with the basics for our viewers. Could you provide an overview of Delaware’s approach to sales and use tax? And how does it differ from other states?
Claudia Mejia: Okay. So Delaware does not impose state tax, which is really good for those who are buying goods within the state. Basically, anybody who sells vehicles, or computer hardware support, doesn’t have to charge sales tax. However, they have another type of compliance which is basically the gross receipt tax, and it is calculated based on the monthly revenue that the company has. It is based on gross revenue without deduction. So that’s a compliance that they need to follow.
Srishti: But that’s a relief for the companies who are working over there, right? Since Delaware does not have a sales tax, are there still compliance requirements that businesses need to manage?
Claudia Mejia: Yes. That’s why they have the compliance to file for the taxes for the gross revenue. They have to make sure they calculate those revenues right by product, by industry, by following the relevant regulations.
Srishti: That makes sense. Do you have any examples to explain how that would work?
Claudia Mejia: Basically, if, say, medical devices or computer hardware retailers sold the products within the state, they would calculate the gross revenue on those products and then pay the rate that the state has set up for those particular products. That’s how it’s done. The important thing is to ensure that you have those standards well placed and that you follow the rates within the state. This ensures compliance with regulations and avoids penalties, which nobody wants to pay.
Srishti: That’s true, and that’s very interesting. How often does Delaware’s gross receipts tax rate change, and how can businesses stay updated on these requirements?
Claudia Mejia: Usually, it’s relatively stable. However, if the state needs extra money to pay for certain things, they might change it. It may change by industry, so the rates for retail might differ from those for services. The Delaware Division of Revenue sets up these rates. Businesses should follow their publications and, ideally, use software that integrates the tax rates automatically.
Srishti: Understood. What are some primary resources available to businesses to stay informed about gross receipts tax requirements in Delaware?
Claudia Mejia: The Delaware Division of Revenue produces all the tax rates, guidelines, regulations, and changes. They provide regular publications and alerts. Third-party software solutions also help by integrating these rates directly into business operations, ensuring compliance.
Srishti: That’s really helpful. Can you specify the challenges businesses face when managing compliance with Delaware’s gross receipts tax? If you could share examples, that would be helpful.
Claudia Mejia: While it’s good that you only need to calculate the gross receipts tax, businesses still face challenges. For example, if you ship a product out of state, you need to collect sales tax, so there are dual activities to manage. For gross receipts tax, calculations need to be precise, categorized by industry and product, and based on gross revenue without deductions. Ensuring diligence in this process is critical to avoid penalties.
Srishti: Understood. Given your experience, how do you think artificial intelligence can help businesses manage gross receipts tax compliance more efficiently in Delaware?
Claudia Mejia: AI can simplify compliance by automating revenue tracking by industry and product, applying the correct rate in real-time, and automating reporting and filing systems. With AI, businesses can see their revenue growth, liability, and more through dashboards, enabling real-time decision-making and reducing manual work.
Srishti: That sounds interesting. How can AI support companies during audits for gross receipts tax compliance in Delaware?
Claudia Mejia: The key during audits is having the right documentation. AI enables fast retrieval of detailed records and detects errors by analyzing transaction histories. This speeds up the audit process and ensures compliance. Companies like Hyperbots provide software that not only tracks revenue but also ensures compliance with auditors and documentation retrieval.
Srishti: That’s really helpful. What do you see as the future role of AI in handling Delaware’s gross receipts tax compliance?
Claudia Mejia: Beyond transactions, AI can enable predictive analytics, helping businesses forecast revenue, account for seasonality, and manage cash flow effectively. Real-time compliance through dashboards and alerts will further streamline operations. With systems like Hyperbots, businesses can focus on growth rather than compliance headaches.
Srishti: That’s so true. Thank you so much for sharing these insights with our viewers. This brings us to the end of the discussion for today. Thank you so much, Claudia, for joining us, and a big thanks to our viewers for staying connected. Goodbye and have a great day!
Claudia Mejia: Thank you, you too.
Moderated by Srishti, Digital Transformation Consultant at Hyperbots
Srishti: Hello, everyone! My name is Srishti Rajveer, and I’m a digital transformation consultant at Hyperbots. Today, I’m delighted to have Shaun Walker as my guest. Thank you so much, Shaun, for taking out the time today.
Shaun Walker: Absolutely, thanks for having me.
Srishti: Of course! A little bit about Shaun for our viewers here. He is the Sox compliance manager at Norfolk Southern, and today we will be discussing Arkansas sales and use tax compliance. So, let’s begin.
Shaun Walker: Let’s get started.
Srishti: Alright. To start with our first question, could you provide an overview of Arkansas sales tax and use tax rates, and how do these rates differ across goods and services?
Shaun Walker: Arkansas has a base state tax rate of 6.5%, which applies broadly to goods and most services. However, local jurisdictions—cities and counties—can add additional rates, leading to variations in the overall rate depending on the location. Some examples include general merchandise, which has a 6.5% rate, whereas food and groceries are generally taxed at a reduced rate of 1.5%.
Srishti: Understood. Are there any exemptions you’ve noticed across this?
Shaun Walker: There are exemptions, such as prescription drugs and certain medical devices, which are generally exempt from sales tax. The system requires businesses to carefully assess rates based on item types and locations.
Srishti: Understood. Could you discuss some of the jurisdictions in Arkansas with notably high or low tax rates? How does this affect businesses?
Shaun Walker: Some of the highest rates are in cities like Gould and Lakeview, which have a combined rate as high as 11.5%. Meanwhile, rural areas or smaller towns may have combined rates closer to 7%. For businesses, these differences mean they have to adjust rates based on their sales location. Businesses in high-tax areas may face increased costs, which can impact competitiveness, while companies in lower-tax areas may attract more price-sensitive customers.
Srishti: Makes sense. How often do Arkansas sales tax rates change? How do businesses keep up with these updates?
Shaun Walker: The state tax rate changes infrequently, but local rates can change annually or even more often, especially if local governments adjust for budget requirements. For example, recent local rate adjustments have taken place due to infrastructure improvements in various counties. To keep up, businesses rely on tools or resources provided by the Arkansas Department of Finance and Administration or third-party tax compliance solutions.
Srishti: Understood. What are some of the primary resources available to businesses to stay informed about sales and use tax changes in Arkansas?
Shaun Walker: The three main resources are the Arkansas Department of Finance and Administration (DFA), sales tax lookup tools, and third-party compliance solutions. Platforms like Avalara and TaxJar provide real-time updates on local sales tax rates across Arkansas with integration options for sales systems. These resources help businesses manage rate variability across jurisdictions and ensure accurate application of tax rates.
Srishti: I see. What challenges do companies face when managing compliance with Arkansas sales and use tax rules? Could you share some examples for our viewers?
Shaun Walker: Challenges include jurisdiction variability, as numerous counties and cities each have their own tax rates ranging from 7% to 11.5%. Frequent local changes require businesses to stay constantly updated, especially if they operate statewide. Additionally, complex taxability rules make it challenging to determine which goods and services are exempt or partially exempt, like the reduced rate of 1.5% for food items.
Srishti: Understood. Since artificial intelligence is so prevalent, how can AI help businesses manage sales tax and use tax compliance more efficiently, especially in Arkansas’s complex local tax structure?
Shaun Walker: AI can simplify compliance in several ways. Automated rate updates pull in tax rates from government sources and update them for each jurisdiction, ensuring compliance. Location-based rate applications calculate the exact sales tax rate based on the customer’s location, eliminating errors. AI also monitors and applies exemptions, like Arkansas’s reduced rate for groceries, based on transaction details. For example, Hyperbots AI offers advanced solutions that automate local tax rate applications and ensure accurate calculations, reducing errors and saving time.
Srishti: That’s really interesting. How can AI support companies during audits for sales and use tax compliance in Arkansas?
Shaun Walker: AI supports quick document retrieval and error detection. Hyperbots AI systems help businesses prepare for audits by generating compliance reports and organizing transaction records by jurisdiction. This reduces the time and effort required for documentation, making audits less stressful and more transparent.
Srishti: That’s amazing, especially with the advancements AI has brought into this space. This makes me curious—what do you see as the future role of AI in handling Arkansas sales and use tax compliance?
Shaun Walker: AI’s role will continue to expand with predictive analytics to forecast the impact of upcoming rate changes, real-time compliance monitoring through live dashboards, and proactive alerts for rate changes. Hyperbots AI is pioneering these solutions with predictive and real-time capabilities, helping Arkansas businesses anticipate changes and manage tax compliance seamlessly.
Srishti: Thank you so much for sharing your insights. That was really helpful. This brings us to the end of our discussion today. Thank you so much for joining us. It’s been a pleasure talking to you, Shaun. A big thanks to our viewers as well. See you around—goodbye and have a great day!
Shaun Walker: Awesome, thank you.
Moderated by Sherry, Financial Technology Advisor at Hyperbots
Sherry: Hello, and welcome to all our viewers on CFO insights. I am Sherry, a financial technology consultant at Hyperbots, and I am very excited to have Jon Naseath here with me, he is an accomplished executive with expertise in AI, machine learning, and computer vision driving impactful technology solutions in education, healthcare, and business. Thank you so much for joining us today, John. We’ll be discussing a niche topic, which is Alaska’s State sales and use tax rates. To get us started with the interview, could you provide an overview of Alaska’s State sales and use tax rates? And how do these rates differ across goods and services?
Jon Naseath: I will first just want to start out by saying that, you know, a lot of states have different complexities. Over the past two weeks, we’ve spoken about a few different states. We started with California, which is where I was born and raised, and have worked through most of my career—a lot of complexities there. We then spoke about Arizona, where my wife’s family is all from, and my family was mostly from California mostly, and now we’re talking about Alaska, my son has been living in Alaska for the last two years, and it’s a beautiful state. Ironically, each of these states has its own unique complexities for sales tax. So with Alaska, what’s unique is, that everyone thinks about Alaska as not having income tax and not having sales tax because they have so much oil revenue and different things as the primary reason but separate from the State, the local jurisdictions are permitted to impose their own local sales tax, and they often do. For example, Juneau has a 5% sales tax, which applies broadly across most of the goods and services. Wasilla, for example, imposes a 2.5% tax. So the local taxes create a patchwork of systems across the State that require businesses to know the exact rate based on the local jurisdiction. The services are usually taxed at a local level, creating additional variability.
Sherry: Could you discuss some of the jurisdictions in Alaska with notably high or low sales tax rates? And how does this affect businesses?
Jon Naseath: Sure. Well, it’s important to note that Alaska is just huge, and as far as the geography, it covers more than most states, obviously. Some examples are Wrangell and Cordova, where their combined local rates reach up to 7%. So it’s quite high—or actually, compared to California, that’s quite average—but it’s high for Alaska. And then other remote areas or unincorporated regions, don’t have sales tax at all. So it just really depends on where you are and how you do your business. These variances require business operations across the locations to adjust their rates frequently. Companies serving in high-tax areas may consider pricing strategies to support their businesses and avoid extra costs if possible. It could impact some of their business decisions.
Sherry: How often do Alaska’s local sales tax rates change? And how do businesses keep up with these updates?
Jon Naseath: Most changes are going to happen on an annual basis with the new budgets. Oftentimes they are announced at the beginning of the year. But really, the local jurisdictions have the freedom to adjust the sales tax as they see fit. In some cities, seasonal adjustments are made—for example, increasing rates during or having rates specific for the tourist seasons could come into play in different parts of Alaska. Businesses typically monitor rate changes through local government announcements, or they may rely on automated systems to pull the rate data from tax databases. There really isn’t a centralized state system because there isn’t a state tax, so it becomes pretty challenging to stay up to date for the local city taxes that are required. Especially for a small business, it can become quite burdensome.
Sherry: What are some of the primary resources available to businesses to stay informed about sales and use tax changes in Alaska?
Jon Naseath: Yeah, again, since there’s no state tax, it really is about how you pull together the different municipal and city tax requirements. There’s the Alaska Municipal League, which is a resource that tracks the tax changes across the different areas.There’s also local city websites, local jurisdiction websites that you’d have to go to. And then third-party tax tools—an example is Avalara—and different sales tax handbooks. Really just trying to figure out how to get the information that you need for your local taxes.
Sherry:: What challenges do companies face when managing compliance with Alaska’s unique sales and use tax rules? And could you share some examples of the same?
Jon Naseath: Well, one of the main ones is just the local jurisdictional complexity. Each locality has its own rate. Businesses have to apply the rate based on wherever their customer’s location is. So just getting that lined up right is complex. A company that’s selling in both Juneau at 5% and Wasilla at 2.5% has to adjust their invoices accordingly. Also, the seasonal variability—some towns adjust based on whether you’re in the peak season and have a lot of tourists coming through. And also figuring out what items need to be taxed. Not all goods and services are consistently taxed across the locations. It just gets pretty complex when you consider timing, location, product, and all the different things that go into individual taxable items.
Sherry: How can artificial intelligence help businesses manage sales and use tax compliance more efficiently, especially in Alaska’s decentralized tax environment?
Jon Naseath: Well, there aren’t many tools that are doing it, but figuring out an AI tool that can help automate rate updates and get the local information that’s required—figuring out where the sales are happening. AI tools can help with geolocation to figure out where the sales occurred, and then monitor the changes. So as things happen with the timing of seasonality, as we mentioned, AI can help with that. I’m personally not aware of any other tools besides Hyperbots that can handle all these things and just manage all the changes in Alaska tax.I’ve been in businesses where we just didn’t do business in Alaska because of this. As we were growing, it wasn’t worth the complexity, or we just decided, “We’ll wait till Alaska comes knocking on our door.” Later, they came knocking, so we had to figure it all out. To clarify, that’s what the prior management had decided, and when I came in, we cleaned it all up. It was quite painful to figure out.
Sherry: How can AI support companies during audits for sales and use tax compliance in Alaska?
Jon Naseath: Well, the favorite thing about audits, especially with tax audits, is they love asking for information, and you have to go dig into your stuff. AI can help with that. It can access your information, find the right files, and find the right data that you need. It can perform document retrieval, error detection, and look through files. I’ve been in a situation where the state auditor came knocking for a tax audit. We were able to show our information, demonstrate how we had prepared it all, and convince them it wasn’t worth their time to do a full audit.
Sherry: And what do you see as the future role of AI in handling Alaska’s sales and use tax compliance?
Jon Naseath: Sales and use tax is really one of those processes where, if you have it under control, it’s a non-issue. If not, it can be very painful and require a ton of resources. An AI tool can help manage those resources, ensure compliance, perform predictive analysis, and manage risks.It can provide real-time dashboards to monitor compliance in different jurisdictions and proactive compliance alerts if something changes locally.
Sherry: It’s always a pleasure learning from you, Jon. Thank you so much for indulging us in these conversations and being as insightful as you always are.
Jon Naseath: My pleasure. I do need to call out again, I’m not a tax specialist. Talk to your own tax auditors and specialists. It’s exciting to see a company like Hyperbots tackling unique areas with AI.
Sherry: Thank you so much, Jon.
Moderated by Srishti, Financial Technology Advisor at Hyperbots
Kate: Hello, everyone! My name is Kate, and I’m a financial technology advisor here at Hyperbots. Today, I’m delighted to have Shaun Walker as my guest. Hey, Shaun, how are you doing today?
Shaun Walker: I’m doing great. Thanks for having me.
Kate: Thanks for joining us. So, Shaun is the SOX Compliance Manager at Norfolk Southern. Today, we will be discussing defining the chart of accounts for sales and use taxes. So let’s dive right in. How should companies approach defining the chart of accounts for sales and use taxes? Is there a one-size-fits-all solution?
Shaun Walker: Companies should tailor their chart of accounts based on their operational complexities and tax compliance needs. For example, companies operating across multiple states may benefit from a statewide approach, whereas those in just a single jurisdiction might only need a single sales and use tax payable account. A one-size-fits-all approach doesn’t apply. Businesses vary in scope, tax obligations, and reporting requirements.
Kate: Moving on, what are the pros and cons of using a single sales tax payable account for all sales taxes under accounts payable liabilities?
Shaun Walker: The main advantage of using a single sales tax payable account is simplicity—it reduces the complexity in the chart of accounts. However, the downside is that it’s not as granular, which can make tax reporting and reconciliation more difficult, especially for businesses operating in multiple states.
Kate: Understood. So how can a statewide approach in the COA help companies that operate in multiple jurisdictions?
Shaun Walker: A statewide approach enables companies to allocate sales taxes owed by each state, which is essential for accurate state tax reporting and compliance. For example, if a company sells goods in California, Texas, and Florida, creating separate accounts for each state’s sales tax helps keep records organized and ensures each jurisdiction’s tax obligations are met without confusion. This approach also simplifies audits and compliance checks, as transactions are already broken down by state.
Kate: That does make a lot of sense. So, Shaun, what about further breaking down sales taxes into county or municipal levels? Is this necessary or is it overcomplicating the chart of accounts?
Shaun Walker: For companies with substantial operations across different counties or municipalities within a state, further breakdowns may be necessary. For example, a business with outlets in various California counties may benefit from categorizing sales taxes by county since California has county-specific sales tax rates. However, for companies with limited geographic reach, such granular segmentation could overcomplicate the chart of accounts without adding much value.
Kate: I understand. Moving on to the next question, would it be beneficial for companies to define sales taxes by expense head in the COA, such as categorizing tax for office supplies, equipment, and services separately?
Shaun Walker: Defining sales taxes by expense head can be useful if there’s a significant tax rate difference for different expense types. If a company frequently purchases taxable and non-taxable items in different categories, separating sales taxes by expense head could improve financial insights. However, the added complexity may outweigh the benefits for most companies, especially those with relatively uniform tax treatments across purchases.
Kate: That is a very interesting point. So, Shaun, what are some implications if the chart of accounts for sales and use taxes is not defined properly?
Shaun Walker: Improperly structured tax accounts can lead to compliance issues, inaccurate reporting, and challenges during audits. For instance, if a company doesn’t separate taxes by state, they may inadvertently under-report or over-report taxes in specific jurisdictions.
Kate: Understood. How can AI help companies better manage sales and use tax accounts within the chart of accounts?
Shaun Walker: AI can automate much of the categorization, reconciliation, and compliance review for sales and use taxes. For example, AI systems can analyze invoices and automatically suggest or assign GL codes for each jurisdiction’s tax, which is particularly useful for companies with complex tax obligations. Additionally, AI can help identify discrepancies, suggest updates based on changing tax regulations, and streamline audit processes by accurately categorizing transactions by tax jurisdiction.
Kate: That is a very unique take on this and with that, we have reached almost the end of our discussion today. So the last question is: Can you share an example of how a company might review and adjust its chart of account structure for sales taxes to improve accuracy and compliance?
Shaun Walker: Sure. For instance, a retail company expanding from local to multi-state operations could review its chart of accounts to add state-specific sales tax accounts. Initially, the company might use a single sales tax payable account, but as it expands, separating taxes by state becomes essential. By adding accounts for each new state and using sub-accounts for major counties, they ensure better compliance and easier tax filing. Periodic reviews, possibly assisted by AI, help them keep up with any changes in state and county tax rates, ensuring accurate records.
Kate: That was a really good example, Shaun. I completely agree with you and with that, we have come to the end of today’s discussion on defining the chart of accounts for sales and use taxes. Thank you so much, Shaun, for joining us and sharing your insights, and a big thanks to our listeners as well. I’ll see you around.
Shaun Walker: Alright! Same to you. Thanks.
Moderated by Srishti, Financial Technology Advisor at Hyperbots
Srishti: Hello, everyone! My name is Rishi Rajvir, and I’m a Fintech advisor here at Hyperbots today. I’m delighted to have John Silverstein as my guest. Thank you so much, John, for taking out the time today for our viewers. John is the VP of FP&A at Extreme Reach, and today we will be discussing New Jersey State sales tax and use tax as well as how businesses can stay compliant with these evolving requirements. So shall we get started, John?
John Silverstein: Yeah, let’s get started.
Srishti: Perfect. To get started, can you give us an overview of New Jersey sales tax and use tax rules, particularly regarding which goods and services are taxable and which are exempt?
John Silverstein: Yeah. In New Jersey, most things, particularly tangible personal property, are subject to sales tax—electronics, clothing over $110, and furniture. Certain items are exempt, though, such as groceries, prescription drugs, and medical devices. Similar to other states, New Jersey also imposes a use tax on goods purchased outside the state that are brought back to New Jersey. Many services are exempt, but some, like repairs, maintenance, and certain professional services, can be taxable as well. For example, plumbing repair services are taxable, while labor on a new construction job is not.
Srishti: Understood. And how does New Jersey’s sales tax rate vary across different jurisdictions?
John Silverstein: New Jersey’s sales tax is currently 6.625% and is relatively uniform across the state. However, certain urban areas like Camden, Jersey City, and Newark apply additional local taxes in enterprise zones or specific regional tax incentives. These are typically capped at 6.625% for most purchases. In contrast, certain counties may implement tax exemptions for specific industries, like manufacturing or research, to encourage growth in those sectors.
Srishti: I see. That’s very interesting. Can you share your insights on how frequently these sales and use tax rates change? And what factors contribute to these changes?
John Silverstein: Sales tax rates in New Jersey have been generally stable over many years. They adjust them less frequently than other states, making it easier to keep up with changes. The last major change occurred in 2018 when the rate went up to 6.625%. Changes typically stem from state budget adjustments, legislative actions, or new programs and tax reforms. Additionally, use tax rates are often aligned with sales tax rates. Businesses must monitor rules around out-of-state purchases, which is a unique challenge in New Jersey. Changes can also arise from state agreements or court decisions, like the Wayfair ruling, which altered how remote sales are taxed.
Srishti: That definitely makes sense. On to the next question—what are some of the challenges businesses face in keeping up with New Jersey’s sales and use tax regulations?
John Silverstein: One of the main challenges in New Jersey is ensuring that they correctly apply the state’s sales and use tax to both in-state and out-of-state transactions. With the increased complexity of online sales and cross-border commerce—especially with New Jersey’s proximity to New York and Pennsylvania—it can get tricky. Businesses need to track which goods are taxable, which are exempt, and which require use tax reporting. Keeping up with exemptions for different industries, like manufacturing or nonprofits, or specific zones like urban enterprise zones, can create confusion. The digital landscape adds further complexity, as New Jersey also taxes digital products like software and cloud services.
Srishti: Understood. Where can companies find reliable, up-to-date information on New Jersey sales tax and use tax rates?
John Silverstein: The primary source is the New Jersey Division of Taxation website, which provides accurate and up-to-date sales tax and use tax information. It includes tax rate tables, guides, details on specific exemptions, and examples to help businesses. Third-party resources like Hyperbots, Avalara, and AvaTax also provide real-time updates by monitoring these sites for tax law changes. These tools help automate compliance processes and integrate into ERP systems, making it easier to stay updated and apply correct rates.
Srishti: That is really helpful. Can you share an example of how a business might use these resources to stay compliant with New Jersey sales tax and use tax rules?
John Silverstein: Sure. For instance, an e-commerce company selling products in New Jersey and other states can use Hyperbots or Avalara to automatically calculate the correct sales tax based on the customer’s location. If the customer is in New Jersey, the system applies the 6.625% sales tax rate. If the business ships the product to New Jersey from a neighboring state, it ensures the correct use tax is applied as well. These tools can also track specific tax exemptions, preventing mistakes like charging sales tax on groceries or prescription drugs.
Srishti: I see. Given your experience, how can AI help companies stay on top of sales tax and use tax changes in New Jersey?
John Silverstein: AI is incredibly helpful and already providing huge benefits. It applies sales and use tax rates accurately with tools like Hyperbots or Avalara. AI automatically monitors rate changes at state and local levels, flags new rules or modifications, and updates systems immediately. It checks tax authority updates and learns over time, improving its understanding of specific transactions. This reduces human error and ensures proper categorizations of taxable products.
Srishti: Perfect and for the last question, are there any specific AI tools or features you would recommend for managing sales tax and using tax compliance in New Jersey?
John Silverstein: I highly recommend tools like Hyperbots or Avalara. These integrate with ERP systems, ensuring compliance without the added cost of manual oversight. They provide real-time updates, automatic application of rates, and seamless integration into your ERP. AI tools with features like jurisdiction mapping, exemption handling, and automated tax calculation streamline compliance and ensure accuracy across transactions.
Srishti: That’s amazing. This has been really helpful. Thank you so much, John, for providing valuable insights on managing sales tax and use tax in New Jersey and the role AI is playing in simplifying compliance. And to our viewers, thank you for staying with us. That’s all we have for today. Thank you so much. Goodbye, and see you next time!
John Silverstein: Alright. Thank you.
