Certified Service Providers are an integral part of a simple sales tax in the post-Wayfair world. All states should create a certification framework for sales tax compliance software providers. Certified Service Providers (CSPs) are an integral part of a simple sales tax—leading to enhanced sales tax revenues and lower administrative costs for states and retailers.
In the post-Wayfair sales tax environment, sellers who bring their goods to a national market must navigate a complex web of state sales tax rules and regulations. Keeping track of shifting boundaries within a state, variable bases, and changing tax rates of distinct taxing jurisdictions is a daunting task, but the system is particularly burdensome for smaller sellers without dedicated compliance staff.
Cloud-based software from leading sales tax compliance companies significantly eases multi-jurisdiction sales tax calculation, collection, and remittance. Using software from a certified service provider simplifies and streamlines the process for retailers, creating cost savings for states and encouraging voluntary compliance. When a service provider and its software are certified by a state, both the state and taxpayers can approach the market confident that sales taxes are being accurately collected and remitted. CSPs automatically provide sellers with all the information needed to remain tax code compliant in a constantly-changing environment, from identifying the appropriate taxing jurisdiction, to automatically applying any appropriate exemptions, to seamlessly collecting and remitting the owed tax. These efficiencies lead to higher compliance rates, enhanced tax collections, and lower state administrative costs.