Tax Matrix Services
When using a third party compliance system, product taxability is often an issue that must be addressed. Products taxable in one state may be exempt in others. In addition, the rules and regulations governing the taxability of transactions are subject to change. Therefore, the accuracy of your tax engine is diminished unless the tax matrix rules are reviewed and updated on a regular basis.
DMA provides Tax Matrix Services to address these challenges. Our Tax Technology and Sales/Use Tax Division professionals work together with you to ensure the selected transaction tax engine functions as expected and the tax results align with your tax policies. DMA’s staff is uniquely positioned to assist in not only the tax research and validation but can also work directly within your tax system to make the updates and provide testing to ensure proper functionality.
In order to ensure accurate calculations are provided by the system, it is extremely important to map your company’s material product (SKU) numbers to the corresponding product codes within each tax module. DMA possesses in-depth understanding of the various tax laws within a specific industry and, in the case of VAT taxes, per country. Our professionals research and update each category. The correct taxes will be retrieved based on its product type regardless of the country you sell an item into. In special situations where customization is needed, DMA provides the necessary assistance.
DMA simplifies the entire tax matrix process by bringing our experience to the table so that you avoid the pitfalls of miscoding. Because we do the legwork to determine correct product code assignment, you can be assured of enhanced tax engine performance. In addition, our results are always supported with documentation such as tax statutes and specific policy quotes by the governing jurisdictions.