There are several different stages in manufacturing and distribution. As a result, components and finished products change hands several times — leading to a high number of individual sales transactions. The exempt sales rules are therefore quite complicated. There are not only multiple sellers and buyers, but often multiple jurisdictions at play, all of which have their own rules about what transactions are exempt from taxation.
GMG CERTifyTax is tailor made for even the most complicated operations. Our solution is designed for the optimal automated processing of exempt sales, considering jurisdictional differences and the unique aspects of the manufacturing industry. Whether you are a drop shipper, importer, or run a factory stateside, our team of tax professionals help you to stay in step with tax responsibilities. This prevents audit liability and tax assessments that may cut into your bottom line.
Preserving the Paper Trail
As any business owner who has experienced a tax audit can attest, paperwork is everything. It does not matter if a sale was properly tax exempt if you can’t prove it when the time comes. Because the taxation authorities do not have the resources to investigate every single transaction, they use a sampling method to determine the level of a business’ compliance. A single missing, incomplete or invalid certificate can be extrapolated into a large fine that can cost thousands of dollars.
An obvious way to prevent this kind of liability is to keep accurate and complete records — but too many manufacturers still rely on paper to do the job. This is not only a storage and organizational hurdle; it leaves open the potential for human error. Lost certificates or missing fields on a crucial form are all it takes for a manufacturer or distributor to end up with an assessment. That assessment is not just the uncollected tax, but interest and penalties that also become payable.
Tailor Made for Manufacturing
Manufacturing is a diverse industry. As a result, your business may require tax exemptions to be analyzed at the job level — not just the customer. Your client may initiate a tax-exempt transaction one day but have another sale where tax must be charged the next. GMG CERTifyTax is optimized for this level of detail. As a manufacturer or distributor, you can customize your tax exemption process to ensure accuracy and efficiency, with a record that is digitized, complete, and hassle-free for the customer.
GMG CERTifyTax stands apart because of our ability to customize your solution. Depending on the nature of your operation, you have unique challenges. Those challenges may shift from day to day. Our solution lets you create custom internal communications, and project specific protocols to keep things running smoothly and accurately.
Team of Tax Professionals
GMG CERTifyTax is proud of our automated solution, but our real asset is our team of professionals. Working with attorneys, tax experts, and technology innovators, we have developed a service that lets you rely on people who understand manufacturing. GMG CERTifyTax gives you ease of use and reliability, backed by a team knowledgeable about the distinct challenges faced by manufacturers.
Do you know your sales tax exposure related to exempt sales? If not, we can help with no commitment.
Call (914) 798-9990 to speak with our experts or request information from our sales team by completing the form below.