Front Line Systems

Sage 300 Support, Sage 300, HighJump Warehouse Edge Consultants

  • Home
  • ERP
    • Sage 300 ERP
    • Sage 300 (Accpac) Cloud ERP
    • Sage 300 Demo
    • Sage 300 Support
    • How Much Does Sage 300 Cost?
    • ERP Resources
      • Change Your Sage 300 Partner
      • Increase Your ROI on Sage 300
      • Get Your Sage 300 Year-End Guide
      • Ultimate Sage 300 Guide For Sage 300 Users
  • WMS
    • HighJump Warehouse Edge
    • Warehouse Efficiency Resources
      • 10 Ways a Warehouse Management System Will Increase Efficiency
      • How Does Warehouse Automation Improve Inventory Management?
      • How to Improve Warehouse Performance?
      • How to Increase Picking Speed In Your Warehouse?
      • Tribal Knowledge and Your Warehouse Efficiency
    • HighJump Data Sheets
  • Add-Ons
    • AP Automation
    • Business Intelligence Software
      • Anvizent Analytics
      • Sage Enterprise Intelligence
      • Solver BI 360
    • Credit Card Processing
    • Manufacturing Software
      • AutoSimply Manufacturing Software
      • MiSys Manufacturing Software
    • Other Add-Ons
      • Sage CRM Software
        • Sage CRM Demo
        • CRM Software Consulting
        • CRM Software: Discover How To Use Outbound Call Lists in Sage CRM
      • Document Management Software
      • EDI Software for Sage 300 ERP (Accpac)
      • Hotel Management Accounting Software
        • Hotel Accounting Software
      • Sage HRMS
      • PrintBoss Software
        • Video: PrintBoss Software for Sage 300
      • Projects for Sage 300
      • Avalara Sales Tax
      • Service and Maintenance for Sage 300 ERP
      • Web Stores for Sage 300 ERP
  • Contact Us
    • Contact Us
    • Sage 300 ERP Consultants (formerly Sage Accpac) | HighJump WMS Consultants
    • Meet the Front Line Systems Team
    • HighJump Warehouse Edge Client Testimonials
    • What Our Sage 300 Customers Are Saying
  • Visit Our Blog

October 28, 2014 by Front Line Systems Leave a Comment

Automating Exemption Certificate Management

Tax Exempt Sales – Read these “rules of the road”

road-rulesThink that just because you’re not a retailer you don’t owe sales tax? Think again. More and more traditionally non-taxable transactions are being taxed all over the US. If you’re not up to date, you could have been charging wrong rates (or not charging at all) all this time. And that can add up to an audit that could potentially cripple your business. But it doesn’t end there.

Let’s say you don’t have a sales tax obligation. Congratulations! Businesses that don’t have a sales tax burden often have a much more stringent set of rules to follow to maintain tax compliance. Most of the time, those rules pertain to tax exempt sales. And those are one of the hardest areas to keep straight – for ANY business. The inevitable confusion regarding tax-free sales isn’t for the faint of heart.

So how do you make sure you’re doing your due diligence? Here’s some quick tips:

1.  Watch out for potholes

Many companies assume that services delivered in conjunction with goods sold (e.g., swimming pool and pool cleaning, computers and maintenance, construction materials and installation) aren’t taxable—an erroneous assumption. States like Delaware, Hawaii, New Mexico, South Dakota, and Washington tax most services. Still others, like Texas and Minnesota, are actively expanding service taxability.

Do yourself a favor and work with tax experts like Avalara’s Professional Services to do an analysis of which services require sales tax collection.

2.  Keep your proof of insurance handy

Even if you don’t sell direct to consumers, you may still be part of the transaction through a supply chain. As such, it is your job to prove that you are exempt from collecting tax. Have you ever actually read one of those forms? Depending on the state, they can read a lot like stereo instructions…in another language…that you don’t speak. And if an exemption certificate is invalid, out of date, or missing, you can be liable for the sales tax not collected.

Make sure you have current “insurance cards” on you when you get pulled over by keeping digital copies and automating the collection process with services like CertCapture.

3. Follow traffic laws, even if you think they don’t apply to you

If you have a website and make sales through it, you might be in for a hard left: Many states now collect sales tax on online sales. Many states (e.g., Florida, Texas, California) are requiring out-of-state online sellers to collect sales tax for the first time. If the national effort to effectively end tax-free online shopping succeeds, the already difficult risk-prone sales tax problem will worsen. Add in drop shipping and you have a recipe for a traffic jam.

Keep your online shopping cart up to date with taxability, sourcing, rates, and rules by using an automation service that has a pre-built integration with your system.

Want to learn more ways to survive a potential tax exempt wreck? Contact Front Line Systems to get a handle on your sales tax compliance situation.

Filed Under: sales tax automation, sales tax software

Leave a Reply

Your email address will not be published. Required fields are marked *

Quick Contact

Fill out my online form.

Sign Up For Our Sage 300 Tips & Tricks Newsletter

Register Below

* indicates required

Industry Solutions

Manufacturing
Service
Hotel Management
EDI
Document Management Software
Web Stores
The Cloud

Search For:

Read Our Latest Blog Posts

  • Sage 300 version 2022 product update 2 – What’s new?
  • What’s New in Sage 300 version 2022 – Product Update 1

Why Front Line Systems?

We believe that your business has an amazing capacity for innovation and growth and that technology can help get you there. Front Line Systems is a technology partner that believes in solving problems and creating solutions for the life of your business.   Learn More

Quick Links

Sage 300 Success Stories
Sage CRM Software
Hotel Software
Manufacturing Software
Meet the Front Line Systems Team
Warehouse Management Software (WMS)
Privacy Policy
Blog
Sitemap

Partnerships

Korber Partner

Sage Business Partner

Contact Us

Front Line Systems, Inc. is a Sage 300 and HighJump Warehouse Edge (a Körber product) partner. We are headquartered in Minneapolis, MN and have offices in Virginia and Washington DC. We serve clients across the United States. If you need Sage 300 support or would like a new warehouse management system don't hesitate to contact our team today.

Front Line Systems, Inc.
Phone: (866) 435-0243

Copyright © 2025 Front Line Systems, Inc.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok