Exemption Certificate Management Solutions for Manufacturing
Arguably the sector that faces the most comprehensive set of challenges when it comes to sales and use tax, manufacturers have heavy requirements on both sides of the ball (purchase and sale) to minimize their risk and costs, while staying fully compliant. With complex supply chains, multiple vendors and customers, and significant available purchase exemptions, managing/optimizing sales and use taxes can be complex even for small manufacturers, but no short of overwhelming for large, multinational companies.
The sell side is complex enough on its own. Who is my customer? A retailer, a distributor, a consumer? If the latter, are they exempt from sales tax? Regardless, maintaining the appropriate designation in your billing systems and the associated exemption certificate documentation is a daunting task. Errors can lead to increased costs due to “short-paid” invoices, resulting in sales taxes remitted but not collected, or audit assessments associated with invalid documentation for untaxed sales.
On the buy side, are my purchases subject to statutory (or negotiated) exemptions such as materials used or consumed in manufacturing, research and development, enterprise zones? Do I have vendors that sell me goods that are exempt in some cases and taxable in others (e.g. computers)? Am I purchasing taxable property from vendors that have no obligation to collect sales taxes in certain jurisdictions?
CertSOLV and AUTOSOLV are tailored to address these industry-specific needs on both sides of the line of scrimmage.
CertSOLV automates the collection, validation, and storage of exemption certificates, whether issued or obtained, ensuring that your business remains compliant across all jurisdictions. AUTOSOLV is a cutting-edge solution designed to streamline and automate the use tax compliance process. By leveraging advanced algorithms, machine learning, and real-time data integration, AUTOSOLV provides a comprehensive solution that address all aspects of use tax management.
By implementing ACTSOLV’s solutions, CFOs and Controllers can significantly reduce the risk of audit penalties, streamline the procurement processes, and improve cash flow and profits by accurately applying tax exemptions. Our platform also provides real-time reporting and analytics, giving you valuable insights into your tax exemption status and potential opportunities for process improvement/optimization.
Frequently Asked Questions
What are the tax compliance challenges for manufacturers?
Manufacturers juggle sales- and purchase-side exemptions, must document direct-use vs. resale exemptions, and face varying state rules that create audit risks without automation.
How does ACTSOLV help manufacturers stay audit-ready?
CertSOLV validates exemption certificates and manages expirations, while AUTOSOLV applies correct use tax on untaxed purchases and generates audit-ready reports.
Can ACTSOLV integrate with ERP and shop-floor systems?
Yes. ACTSOLV integrates with common ERPs and data sources so tax treatment occurs directly within your manufacturing workflows.
Learn More
Contact us today to schedule a customized demo of ACTSOLV’s ability to fully manage the exemption certificate and use tax processes for manufacturing companies.