Custom Taxability Matrices

TaxMatrix leads the transaction tax industry in developing granular and relevant Custom Taxability Matrices for our clients (key word = CUSTOM). Our firm was founded on this premise in 1999 and several of the largest states have relied on our tax matrices. We ultimately patented our granular approach and continue to create Custom Tax Matrices for our clients on both the purchase and sell side of taxability. Also, we provide research maintenance for the Custom Taxability Matrices we build so that your team is not burdened with the tedious task of monitoring the complexities in sales & use tax. Continue reading or contact TaxMatrix to learn more about our custom tax matrix services.

Below is a sampling of sectors that have benefited from our custom taxability matrix capabilities:

Custom Taxability Matrix For All Industries

 

 

 

 

 

 

 

A custom taxability matrix is designed specifically for the client’s business model, far removed from the leading look-up tools or intelligent charts, to deliver an optimal set of rules. Our custom matrices help clients ensure tax compliance and improve tax performance. The foundation of our custom matrix service relies on our fully-staffed research team that does nothing but track, monitor and manage changes in sales and use tax laws/codes – we really are a thorough team!

While software and bolt-on applications serve as invaluable tools to tax departments, they cannot replace our team’s day-to-day research and connection to state agencies to provide a best-in-class service.  Tax teams needs granularity – not generalities – to effectively improve the process going forward.  It is the USE of a good or service that often determines the taxability of a transaction. Transaction granularity is the key to compliance as the nuances in the law create opportunities for refunds as well as impose exposures. If your team needs assistance with item and product taxability, call TaxMatrix today – we can help!

There is a material difference between a Custom Taxability Matrix and online access to the industry leading research tools or other customizable research libraries which simply repackage the same content. Instead of repackaging content or pasting state statute, ­TaxMatrix drills deeper to provide the most granular sales tax determinations relevant to the client’s activity.

Please consider the key differences between a generic Sales Tax Matrix and a Custom Taxability Matrix:

General Tax Matrix

Custom Taxability Matrix

  •  One size fits all taxability matrix can be  effective for small service-based  companies with less complexity
  •  Can be effective if the threat of audit or  fear of overpayment is non-existent
  •  Is undesirable for complex sectors, such as manufacturing and R&D
  •  Represents a repackaged version of  research content
  •  Accounts for use of goods/service
  •  Provides a relevant matrix for users (by  plant or location)
  •  Developed based on  taxpayer’s actual operations/activities at the  plan level
  •  Improves tax compliance
  •  Is customizable to meet client’s needs
  •  Sortable by variables such as spend  weighting

 

 

Our team looks forward to partnering with you to support your company’s compliance and recovery objectives. If you are interested, please contact us today.