1. How does Sales tax differ from VAT?

Sales tax differs from Value Added Tax (VAT) in many ways. Sales tax is imposed as a general sales tax and is applicable for all the purchasing and selling of products and, wherever, there is a physical sales nexus.

In the case of value-added tax (VAT), tax is charged at every step of production along with the addition of flat sales tax. VAT is not only levied at every step but also at the retail chain for generating the government’s revenue for a specific region. VAT is implemented in many countries, prominently in nordic countries, the UK, South Africa, etc.

2. How would ‘Tax compliance support’ localize my sales tax?

SubscriptionFlow’s additional tax compliance serves vendors and customers by focusing on their local currency and updated tax rates based on region. With SubscriptionFlow, localizing also enables businesses to automate their sales tax for easier sales tax processing.

3. What features would I avail of from Avalara Sales Tax integrated with SubscriptionFlow?

SubscriptionFlow is a subscription management platform dealing with automated billings and subscription management. Integrated with AvaTax, you will be able to get automated tax calculations in your invoices, according to various regions and tax types of your customers. Subscription businesses do not need to worry about uploading tax invoices, returns, and fillings manually, rather, SubscriptionFlow’s automated system would serve them.

Regulated with tax standardizations, SubscriptionFlow serves ease of access for frictionless tax management processes.

4. How would Sales Tax Returns and Reporting benefit my business?

With SubscriptionFlow automated and cloud-based system, sales tax returns and reporting work would not require manual input. All data and information will be stored digitally along with managing tax returns within the application.

Integration of multiple tools and software, SubscriptionFlow provides robust and frictionless real-time reporting to enhance the process of auditing for different major and minor instances.

5. Do I need to add Sales Tax to my products?

Yes, you need to add sales tax to your products if they have a physical nexus and they are tangible – tangible properties are taxable. However, sales tax varies from region to region.

If your business deals with interstate and international customers, SubscriptionFlow’s automated sales tax management solutions can apply the taxes on the products inclusive of customizations.