Sabrix Managed Tax Service FAQ

What is the Sabrix Managed Tax Service (MTS)?

The Sabrix Managed Tax Service is a complete outsourced transaction tax compliance solution for mid-sized companies that combines the power of an on-demand version of Sabrix's software and tax research with tax professionals and deep tax domain expertise. The Sabrix Managed Tax Service operates as an extension of your company's finance department, allowing you to free up resources, improve the bottom line, and achieve the highest degree of tax compliance.

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What is Transaction Tax Management (TTM)?

The process of accurately determining if a sales tax, use tax or VAT tax applies, calculating the tax based on the latest rates and rules of each taxing authority, and filing timely returns each filing period is called Transaction Tax Management (TTM).

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Why should I care about Transaction Tax compliance?

Sales, use and VAT tax compliance is a legal obligation for every company transacting business, regardless of size. Most mid-sized companies do not have the time, human resources, or in-house expertise to effectively manage this process, relying on a patchwork of employees, software, and third party consultants costing, on average, over $320,000 annually. The resources devoted to managing tax compliance are so fragmented across employees and consultants that most CFOs underestimate the cost by as much as fifty percent. Yet, despite this expense, the average mid-sized company pays an additional thirty-two thousand dollars each year in penalties and interest alone.*

Another challenge is staying fully compliant with the constant churn in tax rates, rules and regulations that take place annually. As your business grows — entering new markets, signing new customers, expanding product lines, adding personnel — so does your tax compliance burden.

* Study by Tallman Insight, fielded by Mindwave Research

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What will the Sabrix Managed Tax Service do?

Similar to outsourced payroll services, Sabrix MTS operates as a trusted extension of a company's finance department, handling the complete sales and use tax and VAT tax compliance process from start to finish. As a fully automated sales and use tax reporting service, our tax compliance outsourcing solution works seamlessly with a company's accounting software to provide up-to-date rate maintenance, real-time calculation of taxes for financial transactions, timely preparation of signature-ready returns, as well as audit research and support services.

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What are the benefits of Sabrix MTS?

The Sabrix Managed Tax Services allows finance departments to:

  • Eliminate the hassle: Allow proven experts in tax to tackle the tedious process of tax compliance, from start to finish, and free up your resources.
  • Reduce the cost: Take advantage of a simple pricing model and our extended team of tax professionals to reduce compliance costs and improve your bottom line
  • Limit the audit exposure: Determine, calculate, report and file your tax with the greatest degree of accuracy to achieve the highest degree of tax compliance
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Will this service help me set my tax policy?

Sabrix MTS does not provide tax advisory services. We work with you and your existing tax policy, identifying areas of improvement. If you are seeking additional counsel, Sabrix is happy to introduce you to our host of advisory partners.

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How is this different than buying a tax rate table?

Sale, use and VAT tax compliance is a process that requires several key components. Buying rate tables addresses only a fraction of the process needed to achieve compliance across the entire transaction tax lifecycle including: address validation, rate maintenance, tax determination and calculation, reconciliation, returns preparation, remittance and audit research and support. The Sabrix Managed Tax Service addresses the full compliance lifecycle, including integration with your existing accounting and e-commerce systems for seamless compliance. Tax rate research and look-ups, manual rate entry, returns generation and more become a thing of the past. Outsourcing sales, use, and VAT tax compliance with our service frees your resources, improves the bottom line and achieves the highest degree of compliance. We worry about tax compliance, and you focus on building your company.

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I've heard of on-demand tax compliance software, how is this different?

On-demand tax compliance software addresses only one-third of the transaction tax compliance process. It alleviates the expense of purchasing software in a single upfront payment, as well as the IT burden of installing, deploying and maintaining software. However, companies still require personnel to manage the software and in-house tax expertise to achieve compliance.

The Sabrix Managed Tax Service is a complete outsourced tax compliance service that operates as an extension of your finance department. Sabrix MTS combines an on-demand version of our software and tax research with a dedicated team of tax professionals and deep tax domain expertise to address the complete compliance process from start to finish.

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Every business has a unique tax situation. How will this service address my specific tax needs?

Sabrix recognizes that tax compliance can not be achieved with a one-size fits all approach. Automation is only part of the equation. Our team of tax experts works with you to understand the unique requirements of your business so that we can operate as a trusted extension of your finance team. We capture key information such as location addresses, registrations and establishments, product exemptions, and more to ensure that we achieve compliance upfront, not after the fact.

Further, to ensure our service is correctly configured to your specific business requirements, we engage in a Compliance Verification Audit. During this reverse audit of historical transactions and returns, we recalculate your taxes and explain any deviation. We demonstrate our thorough understanding of your unique tax needs and prove that Sabrix MTS produces comparable or better results at a lower cost.

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How can I be confident that the tax service is providing accurate results?

Sabrix is trusted and used by many of the world's largest companies, including 50% of the Fortune Global 10, to manage transaction taxes. Currently, we manage transaction tax compliance for over $1.7 trillion in revenue across our customers.

Our SAS 70 certified tax research has been independently audited for the strictest adherence to internal controls for timely and accurate rate maintenance, validating that it meets the auditing standards developed by the American Institute of Certified Public Accountants. Our research also covers 13,253 tax authorities and 170 countries, while most tax research only covers 7,800 jurisdictions.

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Who will prepare my returns?

Your returns are prepared and generated using a combination of software automation and an experienced Managed Tax Service team that reviews each and every return. Your company is assigned a dedicated team of tax professionals who ensure continuity and familiarity with the unique requirements of your company, ensuring accurate and auditable returns.

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How will I file my returns?

Customers can securely access all their information, with complete visibility into the entire transaction tax lifecycle, over a web-based customer portal. Customers will be notified when signature ready returns are available for download, signature and filing. Alternatively, companies can rely on Sabrix MTS to provide full remittance services as well.

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How will my data be kept secure?

We take the privacy of your data seriously. Our financial grade security adheres to the strict requirements demanded by Fortune 500 CIOs, and delivers the availability and reliability that the world's largest companies expect. In addition, our hosting facilities are SAS70 Type II certified by independent auditors to assess the effectiveness of our internal controls for security, reliability and availability.

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