Sales Tax & Compliance brought to you by >> Avalara Logo new12

Estimated reading time: 2 minutes, 45 seconds

The spread of ecommerce has meant an increasing number of businesses have transactions in other countries.  That means those businesses also need to deal with tax, tariffs and duties imposed by other countries which has made cross-border taxation an issue for many organizations that previously did not need to even know the term.

 “Cross-border used to be more of a back water,” says Craig Reed, SVP of Avalara’s global trade business. “Increasingly retailers are considering it a core component of their business.”

To handle the confusing mass of taxes, Avalara recently introduced its cross border system which is comprised by Avalara AvaTax Cross-Border and Avalara Item Classification. The latter product is important because providing taxing authorities with the correct classification code for goods being sold. “If you don’t give customs the correct, code, your goods can get stuck at the border,” Reed said. The complex process of code goods has been largely manual and Reed says that each country has a book ‘about six inches to a foot thick” that defines goods.

Reed says companies sometimes turn the issue over to carriers. But he adds, “They are not very accurate because it’s not the core of their business.”

Avalara’s products utilize a natural language process and algorithms to classify a product and calculate duties and taxes. Reed notes the company has a global research team that uses direct government connections to stay current on tax rates and information.

SAP has taken a different approach to handle cross-border issues. In March, the giant software company, entered an alliance with Goldman Sachs Transaction Banking. 

“Cross border is about adding a layer of simplicity to a complex system,” says Sean Thompson, EVP of the business network and ecosystem, SAP Procurement Solutions. The deal enabled SAP to incorporate Goldman’s cross-border capabilities in SAP’s Ariba applications, making the services available to the member’s of the Ariba Network.

Thompson notes there are many issues in cross border, including gain and loss on currency differences. Thompson says in cross-border taxations the financial systems of the buyer and seller both need to be integrated since the ERP system “is where the payment file is”. Bank systems has generally not been integrate in the process.

The SAP-Goldman combination means foreign suppliers can be paid in local currencies with “competitive” foreign exchange rates and also easier reconciliation of payments to corresponding invoices. There is also real-time payment tracking, cost transparency on bank fees and optimized payment routing offered.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Last modified on Monday, 03 August 2020
Read 1025 times
Rate this item
(0 votes)

Sales Tax Assessment Tool

The Accounting Top 100

Sales Tax Calculator

Social Leader board

The Accounting Top 100 social media leaderboard ranks accounting professionals based on their overall presence, influence, and engagement on social media platforms. Each user’s rank is determined by that user’s Klout Score in addition to a list of custom metrics, and all updated rankings are displayed in new leaderboards generated every two weeks.

Did you make the list?

Congratulations! You can now track your progress on the leaderboard by clicking “Follow us” at the top of the list. Want to get the word out about your new celebrity status? Share this page with all of your friends and followers so they can view and join in on this fun social activity.

Think you’ve got what it takes to make the Top 100?

Join for free today!

Disclaimer

Avalara’s Accounting Top 100 leaderboard (the “Leaderboard”) is assembled using a list of accounting professional users that’s curated by manual entry as well as by Rise.Global's internal Twitter search functionality. We reserve the right to change scoring metrics used for ranking and to exclude anyone from the list, in our sole discretion. The Leaderboard is not an endorsement, recommendation or sponsorship of any of the accounting professionals on the Leaderboard, and we do not make any representation or guarantee of their ability or reliability. Assessments by different methods or based on different information may yield different results. The Leaderboard is only a starting point to gather information about accounting professionals, and you should not rely on it to decide whether to hire an accounting professional.

For feedback and/or questions please contact [email protected].

Visit other PMG Sites:

click me
PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.
Ok Decline