In June 2018, The United States Supreme Court decided on a case that created waves throughout businesses across the country. South Dakota v. WayFair, Inc. changed the way companies view sales tax transactions. Overnight, business of all sizes began to look at their sales tax exposure and investigate how their accounting software could help.
Microsoft D365 Business Central (BC), formerly known as NAV, has had sales tax functionality for many years. Unfortunately, setting up and using this functionality is difficult and confusing. A few large organizations stepped in to make the processes easier and more accurate, but the cost of using those enhancements was often too much for SMB companies to bear.
Tigunia is proud to announce the creation of TigTax, a BC add-on product designed to help businesses set up, maintain, and use the existing sales tax functionality they already own in BC. Unlike other solutions, which can cost tens of thousands of dollars, this economical solution takes the worry out of properly setting up and applying the appropriate tax rates for transactions.
TigTax takes advantage of the tax areas, jurisdictions, posting codes, and tax details that already exist in BC. With TigTax, you can easily download current tax rates for jurisdictions throughout the country. This includes city, county, state, and special taxing jurisdictions. Rates can be updated frequently to ensure that you are using the correct tax rates.
Tax area codes are assigned to customers and sales documents primarily based on zip codes, but TigTax also includes the ability to select the correct tax area when multiple tax areas exist for a single zip code. The system can be set up such that tax area codes are linked to customer records or sales documents when the zip code is entered.
Tax groups are used to determine whether item groups are taxable or not. This functionality also includes the ability to override the taxability of item group based on state. With that, you can set individual taxability of item groups by state in those rare instances where an item is taxable in one state, but not others.
Exemption certificates can also be stored within the system. Just load the certificate into the system to ensure that it is easily retrieved in the event of a sales tax audit or other review. Multiple certificates can be stored for when you have certificates for different states.
The existence of the certificate can also be used to override the tax liable flag on the customer record. For example, a certain customer may be tax liable, but when the certificate is applied, their sales may become non-taxable based on the effective dates of the certificate.
TigTax is easy to set up and use. Once you load the software and perform the minimal setup, you can download the needed tax rates, establish new tax area codes, and apply them to customers and sales documents. With that done, you are good to go. Existing reports can be used to aid in properly reporting tax to the correct jurisdiction. While the actual filing of returns is not included, Tigunia can help with that, too, by putting you in contact with a partner that files sales tax returns for whatever jurisdiction is needed, for a nominal fee.
TigTax from Tigunia is the best way for small to midsize businesses to calculate and report on sales tax transactions from within Business Central. Also, since the system is using standard BC tables, the ability to use the rates for use tax on purchases is also available. Contact Tigunia today to see a demo of TigTax or to discuss any other Business Central needs.
