Transaction Tax Server as an eCommerce Tax Solution TAXWARE International’s

TAXWARE International’s
Transaction Tax Server
as an eCommerce
Tax Solution
Presented by:
Dan Sullivan, CEO
Assisted by:
Scott H. Walters, Vice President, Research & Development
Jon W. Abolins, Director, Tax Department
Adapting Tax Technology
• Sales/Use Tax & WORLDTAX Systems
¤ Address driven (privacy)
¤ Customizable by Merchant
¤ Handles exempt sales by product or customer
exemption
¤ Creates Audit trails
¤ Generates Tax Forms or records for electronic
transmission
• The Transaction Tax Server (TTS)
Existing TAXWARE Systems
The SALES/USE Tax System
VERAZIP
(Address
Verify)
MERCHANT
DATA
(Nexus,
Address, Etc.)
TAX
RATES
PRODUCT
TAX
RULES
MERCHANT
PROCESSING
STEP
(Customer
Exemption)
ReMIT
(Compliance)
TAX
CALCULATION
(S/U Tax)
(WorldTax)
UNIVERSAL
TAX LINK
(Data)
Audit
File
Existing TAXWARE Systems
The ReMIT System
• Platform independent
• Supports all
TAXWARE systems
• Internet-ready for
eCommerce reporting
Transaction Tax Server
Product
Tax Rates
Standard
Tax Rates
Address
Verification
TAXWARE Calculation
Engine
Merchant
Data
(Nexus, ID, etc.)
Buyer
Merchant
The Server Concept allows tax processing from a
variety of sources, using either batch or real time
processing.
Large scale
computer
Systems
TAXWARE
Transaction
Server
Laptops
Desktops
Handhelds
Transaction Tax Server
Product
Tax Rates
Standard
Tax Rates
Address
Verification
TAXWARE Calculation
Engine
Buyer
Merchant
“NO
Fault!”
Merchant
Data
(Nexus, ID, etc.)
Tax
Authority
Transaction Tax Server
Product
Tax Rates
Standard
Tax Rates
Address
Verification
TAXWARE Calculation
Engine
Merchant
Data
Exempt Certificate
Warehouse
Tax Authorities
would make
Exempt Certificate
Files available to the
Transaction Server
Tax
Certificate Updates Authority
Using TAXWARE’s ReMIT as a “Data Highway”
TAXWARE
Tax Calc.
Tax Server
Tax Authority
Audit File
TAXWARE’s
ReMIT
Summary
Summary
Internet
Transmission
Audit File
Mapping Software
Audit File
Other
Tax Sources
TAXWARE’s
ReMIT
TTS Benefits to the Merchant
• The Merchants would no longer have to;
-monitor tax rate changes
Merchant
-monitor tax law changes
-maintain in-house tax Systems
• Transaction based fees - even the smallest of Merchants
could afford it
If “no fault” is implemented
Benefits to the Merchant
• No longer required to collect taxes
• No longer required to complete & submit complicated tax
forms & payments
• Fewer or no time consuming audits
“No Fault” Benefits to The Tax Authorities
• No need to change existing tax laws or rules
• Tax Authorities receive revenues & data at the time
of the transaction
• Tax Authorities can supply data directly to the server
and monitor the application of rates & laws
• Tax Authorities can continue to use existing back office
Systems - the cost to convert is relatively minor
• Audit overhead is reduced - Merchants are offered a
“fault free” option for using the TTS
• The TTS Concept along with “No Fault”
offers the Tax Authorities an opportunity
to simplify taxes
Tax
Authority
Transaction Tax Server
Product
Tax Rates
Standard
Tax Rates
Address
Verification
Merchant
THE
END
TAXWARE Calculation
Engine
Merchant
Data
(Nexus, ID, etc.)
Exempt Certificate
Warehouse
Tax
Certificate Updates Authority