Sales and Use Tax Exclusion and Partial Exemption for Manufacturers, R&D, Utility Companies
Our services include assisting clients in qualifying and quantifying purchases subject to partial exemption or full exclusion from sales and use tax in California and other states. We help California manufacturers manage the sales and use tax expenses by correctly identifying purchases that could qualify for these SUT programs.
The Sales Tax process is very complex and involves many different government agencies from State to Municipal levels. We utilize cutting-edge ai tools and secure data processing software to optimize our workflows, handle big data, and integrate our sales tax solutions within your company operations.
Sales and Use Tax Optimization
In most large organizations, sales taxes are a neglected cost that operate below radar and generally considered to be a given and uncontrollable expense. Because of this and the three items listed below, they are a low priority in a corporate structure and/or Tax department.
Company data is difficult to obtain (it is held by numerous departments, in different systems, in a multitude of formats and at times is incomplete), which makes it hard for a company to quantify the amount of sales taxes paid, quantify potential areas of opportunity, and ultimately serve as support for any proposed strategies to reduce the overall sales tax burden.
Tax/Company employee resources are limited. This makes addressing a low prioritized cost problematic.
Due to the lack of focus on this tax by corporations and consultants, there is a general deficiency of proactive sales tax ideas to reduce overall sales tax burdens. Many of the proposed ideas are too laborious to implement because of the required corporate change and resources needed to execute the strategy (e.g., a procurement company).
Our Process
Quantify current sales/use tax expenditure (capex; expensed items) on a quarterly basis
Place the sales/use taxes in buckets by state, vendor/products and category for purpose of designing optimization strategies
Design and implement optimization strategies in a controlled managed cadence
Leverage technology to capture and process data for purpose of creating strategy specific reports to be shared with management, compliance teams and taxing authorities