Your Sales Tax Solution
The Exactor Sales Tax Compliance Service is a fully automated, end-to-end sales tax solution. It helps businesses regain time lost to sales and use tax administration while minimizing risks associated with these taxes. A single solution that provides:
Exactor System: Product Overview & Features
The Exactor Suite is a fully automated, comprehensive, end-to-end compliance system for sales and use taxes owing in all commercial environments. The cloud-based SaaS services provided by the Exactor Suite cover all elements of compliance: tax determination; full transaction life cycle tracking (including any changes made to a transaction, such as credits, product returns, or exemptions); providing a comprehensive, verifiable, transactional audit trail; managing exemption certificates; preparing and filing tax returns; and transferring tax proceeds to the different tax agencies. By tracking a transaction throughout its entire life cycle, the Exactor Suite can also be used by merchants as a comprehensive tool for sales and use audit purposes, as well as for Sarbanes Oxley compliance.
Exactor’s reliable, fully automated, audit trail creates a seamless, single source for these obligations. The Exactor Suite services are not limited to any single merchant size; all retailers– large, mid-size or small– can significantly reduce the burden and costs of sales and use tax compliance by using the Exactor Suite.
Seamless, wizard-driven integration connectors, require no software downloads or installation, and no technical resources committed to integration. Retailers don’t have to buy, learn, integrate or maintain new software packages. No need to use IT teams to work on custom installation.
Full integration into ERP and financial systems. Transactions are reconciled to the general ledger, and not left hanging. This reduces costs associated with processing, and reduces liability typically associated with human induced error. System tracks transactional data, by line item; including product (SKU); quantity; exemptions (if applicable); and exceptions (discounts, credits; product returns; charge-backs).
Tax determined by applying the highly accurate address and zip+4 methodologies, and all relevant local rules, tax rates and product taxability matrixes.
Complete tracking of transaction life cycle, starting with transaction initiation; authorization; fulfillment; capture; credits; returns; exemptions; and any other change made – when and by whom.
Transactional audit trail provides comprehensive audit solution, including Sarbanes-Oxley (“SOX”) and other compliance audits.
Automation of labor-intensive manual processes. Modular system architecture allows quick adaptation and modification to accommodate new and changing requirements – regulatory and internal. Fully redundant, highly secure, highly scalable system provide for a 7x24x365 up-time system, operating in a safe and secure commercial environment. System evaluated applying standards in compliance with NIST and ISO 17799.
The Exactor System, accessible through the Exactor Online Merchant Dashboard and Exactor Plug-ins that interface directly to the user’s financial software, consists of four major software components:
ExactOCalc, ExactOTrack, ExactOExempt, ExactOFile, ExactOAVS ExactOVAT.
Accurately determining the taxability of a sale is a complex process, stemming from the many questions and factors that affect the tax determination. These range from establishing the location of the transaction, the products and services being sold, and the parties involved in the transaction.
All of this information is required to determine which of the more than 7,000 taxing authorities govern the transaction, which rules apply to the transaction, whether the given products are taxable and at what rate, and whether the consumer might possess an exemption that renders the entire transaction as tax exempt. This is no small task but the ExactOCalc module can do it all, with ease and efficiency and in real-time.
The life of a transaction does not begin and end with the placement of an order. Once a consumer makes a purchase, the transaction has just begun. Discrepancies and errors can result in costly out-of-pocket charges to the merchant. Exactor's finely-tuned tracking system, ExactOTrack, identifies any and all changes made to a transaction, the timing of such change, by whom such change was made and the reason for the change.
All of this information is then coupled with the original transaction, ensuring the merchant of preparing an accurate and reliable sales tax return - and, as importantly, avoiding expensive and unnecessary expenses.
Managing exemptions is often the most difficult part of the sales tax process. While not a complicated task, exemption management can be extremely time-consuming. The last thing that a sales person wants to do is stop a transaction in mid stride to obtain an exemption certificate.
The ExactOExempt module is designed to automate the process of creating, tracking & managing exemption certificates, without impeding the flow of the transaction. The module enables uploading of exemption information in real time, either before or after transaction initiation, and provides for cross-referencing of an exemption certificate to multiple transactions.
ExactOExempt can also be fully integrated into an online shopping cart, so data can be uploaded in real time, as the transaction is being processed.
Filing sales tax returns is a formidable task. It is not the technical, mechanical or physical aspects of filing, but rather the psychological aspect - knowing which returns need to be filed, to which states, and by when. In addition, the filing requirements differ from one filing period to the next. There is nothing consistent about the process. Limited resources and fragmented responsibilities often leave no one individual truly accountable.
ExactOFile removes the struggle with this process by automatically importing data into the appropriate sales tax returns and files these returns electronically when due. The sales tax returns are stored and maintained on Exactor servers for easy retrieval.
CASS Certified Address Verification Service The ExactOAVS module was developed to enhance the accuracy of determining where a transaction takes place. Sales taxes are determined based upon the location of the transaction. Many systems will use a simple zip or zip+4 methodology for determining the location. These systems do not take into account that the zip and zip+4 are determined by the US Postal Service, for ease of mail delivery. Many zip blocks will contain multiple tax locations within, with different tax rates and different reporting different tax agencies. This means that there are good chances that using a zip or zip+4 methodology will result in inaccurate taxes and incorrect tax reporting.
To accurately determine the actual physical location of the transaction, the ExactOAVS module scrubs, cleans and standardizes the address as input by the customer, and produces an accurate address, as recognized by the US Postal Service.
The problem about relying upon an address as input by a user is that any given address can have multiple forms of entry, differing from one user to another. Each individual can write their address in many different forms–often forgetting information or worse yet, providing incorrect information.
The ExactOAVS module will:
- Standardize the address to USPS formatting standards;
- Verify and/or correct the street name, number, suite information ;
- Add / verify and/or update the correct 9 digit zip code information for the address;
- Ensure that the city, state and zip code match;
- Determine whether the address is a deliverable location, recognized by the US Postal Services
Value Added Tax (“VAT”) is a form of sales tax, imposed at each stage of the sale cycle. It is a mandatory consumption tax, used by most countries, differing from US Sales tax in the method of calculating and reporting. Exactor’s ExactOVAT module provides real time calculation of global value added taxes. Exactor maintains rate accuracy, and the merchant does not perform any data-update maintenance service.
The ExactOVAT module can also generate and file VAT returns in most countries, focusing on Europe, Australia and East Asia.
The ExactOVAT module is designed for the Global Marketplace. It allows accurate calculation of sales and consumption taxes in all countries independent of the location of the buyer and seller, adjusting and accounting for local rules. For example most VAT rules are destination based, relying upon the place of delivery. In some economic zones however, such as the European Union, the rules are complicated by requiring the seller to calculate and collect taxes either by the location of the seller or the place of delivery. The ExactOVAT module determines and accurately calculates taxes according to any of the relevant rules.
Merchants can rest easy knowing that their sales tax obligations are being handled in a timely fashion by a single point of contact.
SPEND TIME ON SALES, NOT ON TAX
- Real-time Sales and Use, tax calculations;
- U.S. tax calculation specific to the street address level;
- Comprehensive taxability determinations, applying product specific rules and rates;
- Personal exemption management;
- Full-service tax return preparation, filing, and remittance services for every state and local jurisdiction; and
- Reduces costs associated with sales tax compliance efforts;
- Reduces processing and human error; and
- Reduces liability
- The Exactor Sales Tax Compliance Service has been certified by state tax agencies. Certification covers accuracy of the taxes calculated by the system.
- The service uses the physical address to determine where the transaction occurs. This is highly more accurate than systems that rely on zip code alone.
EASY INSTALL, NO MAINTENANCE
- The service can be easily integrated into many shopping carts and accounting programs with easy to install plug-ins.
- Once installed, there is no maintenance. Exactor tracks and installs all tax rate and rule changes
- Automated systems = savings in labor.
- Certified systems = reduced liability, peace of mind.
- Hosted solution = $0 maintenance requirements
- Cost effective service fee.
The Exactor Sales Tax Compliance Service also provides real time determination of value added tax (VAT).