High Level Compare and Contrast
QuoteWerks offers several sales tax calculation options:
Aggregate tax rate (no realtime):
This is very straightforward, you simply need to manually enter or select the aggregate tax rate for each document. You can set a default aggregate tax rate for new documents. You can also setup the DataLink to pull the aggregate tax rate from a CRM customer record into the quote. This same aggregate tax rate is applied to all taxable items in the quote.
Aggregate tax rate (with realtime):
Using the realtime module, the aggregate tax rate is automatically determined by looking up the ship to location zip+4, and then obtaining the aggregate tax rate for that specific locations state, county, city, etc. This same aggregate tax rate is applied to all taxable items in the quote.
Advanced Sales Tax (with required realtime)
Building on the realtime module sales tax data feed and zip+4 determination. Advanced Sales Tax supports the ability for each line item to have it's own sales tax rate including the application of various sales tax rules per item type.
Each line item will show the breakdown of what tax rate and amount is owed to each jurisdiction like State, County, city, etc. Single Article tax rules will be applied. Different tax rates per item type, tax caps can be supported with Sales Tax rules that are manually setup.
AvaTax integration (coming in the future)
We have plans to add an AvaTax integration in the future.
Digging Deeper
In short, QuoteWerks now offers a new, cost effective, Advanced Sales Tax option which supports line item level taxes, honoring Single Article limits, max tax caps, and more. Line item level taxes meaning that some line items can have different tax rates and rules than other line items. While much of this is automated, certain calculations require manual creation of some tax rules.
In the future, we also plan to release an integration to AvaTax. AvaTax is significantly more costly, but depending upon how diverse and geographicaly wide spread your sales tax needs are, AvaTax may be your preferred solution.
QuoteWerks Aggregate Sales Tax
Capabilities:
•Line item and Total sales tax is automatically and instantly calculated when any numbers change in the quote •Applies a single aggregate percent tax to all taxable items on the quote. Does not have any capability to, for example charge, 6% sales tax on the total sales amount for the State of Florida, and charge 0.5% for the County, but only up to the first $5000 of the sale amount. Limitations like this are also present in QuickBooks Desktop. •Is included in all Editions of QuoteWerks. •80% of customers that responded to our "Sales Tax Needs" Survey stated that the Aggregate QuoteWerks sales tax system handles their needs.
Cost:
•Included in all editions of QuoteWerks at no extra charge. |
QuoteWerks Advanced Sales Tax
Capabilities:
•Line item Sales Tax and Total sales tax is automatically and instantly calculated when any numbers change in the quote. •Each line item can have different sales tax calculations *. •Supports Single Article tax rules like in FL, 6% sales tax is charged for the state for the entire amount of the sale, and Orange county charges 0.5% sales tax only on the first $5000 of the sale automatically. •Also handles scenario like in Tennessee where a tax is charged on only the amount between $1600 and $3200 with manual sales tax rule. •Also handles scenario like in Connecticut where if software is sold to a business then the sales tax is only 1% versus the regular 6.35% with manual sales tax rule. •Also handles scenario where the general sales tax rate may be 6%, but if you are selling food, or vending machines, etc, a different tax rate may be assigned based on ItemType with manual sales tax rule. •Also handles max sales tax caps with manual sales tax rule. •Has some basic Sales Tax reporting
Cost:
•Requires purchase or subscription of the Realtime module •Requires current UMP
* Many customers tend to sell only few tax category type of items and usually just sell locally in their state. The Advanced Sales Tax and real-time module offered in QuoteWerks offers fantastic value.
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Avalara Sales Tax
Avalara is a company that provides cloud-based tax compliance solutions for businesses all over the world. Avalara is made up of many business units (over 20). In addition to sales tax calculations (AvaTax), they can assist companies with sales tax filing and remittance, monitoring nexus compliance obligations, exemption certificate management, cross border compliance, and more.
Capabilities:
•Sales tax is not calculated automatically or in realtime, need to initiate request to calculate sales tax. •Automatically handles every tax jurisdiction and scenario including Sales Tax holidays. Avalara AvaTax is regularly updated with the latest tax rates and rules for thousands of tax jurisdictions. The cloud-based platform applies updates in real time, so you always have highly accurate tax information, helping you to stay compliant with changing tax laws without manual intervention. •For extra fees Avalara can help can file your sales tax returns •Has options to track your sales nexus totals •Has extensive reports on your sales tax collection
Cost:
•You will pay significant fees for all this capability. As a base line, an entry level subscription to Avalara costs $670 activation fee, plus around $1700 a year. This includes up to 1500 transactions. Every time you request that the sales tax be calculated for the same document counts as an additional transaction. There are additional factors that influence pricing like the number of states where you have nexus, types of products you sell, number of connectors (like QuoteWerks and QuickBooks), and more. You will want to contact Avalara directly for pricing information for your business, but in general, for two connectors or more you are looking at around at least $3000 per year at the low end with AvaTax. |
Our real time tax rates feed and address verification determines the zip+4 zip code, and from there determines the taxing jurisdictions and general tax rates for the state, county, city, mta, spd, etc. Then using our Sales Tax Rules system which is user configurable you will need to make a few entries to take care of the various other tax rules like MaxTax caps, or different tax rates per product type. The AvaTax product handles these special rules automatically with no need for you to be aware of these tax rules or make entries for them to be properly calculated.
