The Taxware system lets dot com or catalog firms collect sales tax as soon as the customer types in a shipping address. The proper tax rate is calculated based on where the order will be shipped. Sullivan believes such questions are just silly. That last step is a crucial one. Flavored beverages are taxed at different rates depending on how much juice they have.
Exceptions are another complicated area.
Some customers such as charities, governments, manufacturers, and resellers don't have to pay taxes. And, of course, there are thousands of different local and state governments, each with their own rules. Taxware handles all that. That's music to the ears of local and city government representatives on the commission, who fret that they will lose billions of dollars in tax revenue if consumers start to shop online. So they've become big fans of Taxware, which suits Sullivan just fine.