Loke-Uei Tan (@lokeuei)Sr. Manager, Developer Relations

The Wacky World of Sales Tax

12,000+ TAXING JURISDICTIONS

Arapahoe, CO

3.25%

Aurora CD Only7.0%

Arapahoe, Aurora 8.0%

SMALLEST STJ EVA! 9.65%

Hoisington Subway CID +0.50%

SPECIAL BBQ STJ

Ozark Bar-Be-Que CID - MISSOURI

TALKING ABOUT FOOD…

0.00%

8.875%

twix

• Candy is taxable in most states. • Twix has flour listed in the first three

ingredients therefore some states consider it food and exempt it from tax

• Flour is wheat hence Agricultural subsidies

TAXABLE INMOST STATES

twix

• Candy is taxable in most states. • Twix has flour listed in the first three

ingredients therefore some states consider it food and exempt it from tax

• Flour is wheat hence Agricultural subsidies

0.00%

MORE CRAZYTAXABILITY RULES

IN COLORADO…

0.00%TAXABLE!

Pool Cleaning & Nebraska

• Outdoor cleaning is exempt• Indoor is taxed

EXEMPT IN NEBRASKA…

Pool Cleaning & Nebraska

• Outdoor cleaning is exempt• Indoor is taxed

HOSED!!

Flights in New York

• If you charter a plane with a pilot, sales tax is exempt• If you don’t have a pilot, you have to pay

$$

CHARTERED FLIGHTS IN NEW YORK…

Pennsylvania & Formal wear

• Clothing is exempt except for Formal WearPENNSYLVANIA

UNLESS IT’S FORMAL WEAR!

152,000,000 Mailing Addresses

12,000 Jurisdictional Rule-sets 10,000 Sales/Use/Rental Tax Rates

Millions Product/Service Exemptions

100,000 Buyer/Seller Exemptions 1,000 Changes Annually

131,000 Fuel Tax Scenarios

County / Parish

State

Federal

City / Town

International

Government

Commerce

MPOS / POS

eComm

ERP Engines and DatabasesCalculation / Doc Management / Forms

AVALARA3rd Party Products

ENGINES & DATABASES

CONTENTBoundaries, Rules, Rates, Citations,

Exemptions, Licenses, Certificates, Forms, Products, UPC/HTC codes..

$

Platform

Payment

Determination Doc Mgmt Compliance

PRODUCTS400+ Connectors

to 3rd Partner Systems

API

Engines and DatabasesCalculation / Doc Management /

Forms

400+ Connectors

25CONFIDENTIAL & PROPRIETARY |

26CONFIDENTIAL & PROPRIETARY |

curl --user 1234567890:A1B2C3D4E5F6G7H8 --header "Content-Type: text/json" --data @/Docs/getTaxRequest.json "https://development.avalara.net/1.0/tax/

get"

{ "CustomerCode": "ABC4335", "DocDate": "2014-01-01", "CompanyCode": "APITrialCompany", "Client": "AvaTaxSample", "DocCode": "INV001", "DetailLevel": "Tax", "Commit": "false", "DocType": "SalesInvoice", "CustomerUsageType": "G", "BusinessIdentificationNo": "234243", "ExemptionNo": "12345", "Discount": "50", "TaxOverride": { "TaxOverrideType": "TaxDate", "Reason": "Adjustment for return", "TaxDate": "2013-07-01", "TaxAmount": "0", }, "PurchaseOrderNo": "PO123456", "ReferenceCode": "ref123456", "PosLaneCode": "09", "CurrencyCode": "USD", "Addresses": [ { "AddressCode": "01", "Line1": "45 Fremont Street", "City": "San Francisco", "Region": "CA" }, { "AddressCode": "02", "Line1": "118 N Clark St", "Line2": "Suite 100", "Line3": "ATTN Accounts Payable", "City": "Chicago", "Region": "IL", "Country": "US", "PostalCode": "60602" }, { "AddressCode": "03", "Latitude": "47.627935", "Longitude": "-122.51702" } ], "Lines": [ { "LineNo": "01", "ItemCode": "N543", "Qty": "1", "Amount": "10", "OriginCode": "01", "DestinationCode": "02", "Description": "Red Size 7 Widget", "TaxCode": "NT", "CustomerUsageType": "L", "Discounted": "true", "TaxIncluded": "true", "Ref1": "ref123", "Ref2": "ref456" }, { "LineNo": "02", "ItemCode": "T345", "Qty": "3", "Amount": "150", "OriginCode": "01", "DestinationCode": "03", "Description": "Size 10 Green Running Shoe", "TaxCode": "PC030147" }, { "LineNo": "02-FR", "ItemCode": "FREIGHT", "Qty": "1", "Amount": "15", "OriginCode": "01", "DestinationCode": "03", "Description": "Shipping Charge", "TaxCode": "FR" } ]}

curl --user 1234567890:A1B2C3D4E5F6G7H8 --header "Content-Type: text/json" --data @/Docs/getTaxRequest.json "https://development.avalara.net/1.0/tax/

get"

{ "CustomerCode": "ABC4335", "DocDate": "2014-01-01", "CompanyCode": "APITrialCompany", "Client": "AvaTaxSample", "DocCode": "INV001", "DetailLevel": "Tax", "Commit": "false", "DocType": "SalesInvoice", "CustomerUsageType": "G", "BusinessIdentificationNo": "234243", "ExemptionNo": "12345", "Discount": "50", "TaxOverride": { "TaxOverrideType": "TaxDate", "Reason": "Adjustment for return", "TaxDate": "2013-07-01", "TaxAmount": "0", }, "PurchaseOrderNo": "PO123456", "ReferenceCode": "ref123456", "PosLaneCode": "09", "CurrencyCode": "USD", "Addresses": [ { "AddressCode": "01", "Line1": "45 Fremont Street", "City": "San Francisco", "Region": "CA" }, { "AddressCode": "02", "Line1": "118 N Clark St", "Line2": "Suite 100", "Line3": "ATTN Accounts Payable", "City": "Chicago", "Region": "IL", "Country": "US", "PostalCode": "60602" }, { "AddressCode": "03", "Latitude": "47.627935", "Longitude": "-122.51702" } ], "Lines": [ { "LineNo": "01", "ItemCode": "N543", "Qty": "1", "Amount": "10", "OriginCode": "01", "DestinationCode": "02", "Description": "Red Size 7 Widget", "TaxCode": "NT", "CustomerUsageType": "L", "Discounted": "true", "TaxIncluded": "true", "Ref1": "ref123", "Ref2": "ref456" }, { "LineNo": "02", "ItemCode": "T345", "Qty": "3", "Amount": "150", "OriginCode": "01", "DestinationCode": "03", "Description": "Size 10 Green Running Shoe", "TaxCode": "PC030147" }, { "LineNo": "02-FR", "ItemCode": "FREIGHT", "Qty": "1", "Amount": "15", "OriginCode": "01", "DestinationCode": "03", "Description": "Shipping Charge", "TaxCode": "FR" } ]}

curl --user 1234567890:A1B2C3D4E5F6G7H8 --header "Content-Type: text/json" --data @/Docs/getTaxRequest.json "https://development.avalara.net/1.0/tax/

get"

{ "DocCode": "INV001", "DocDate": "2014-01-01", "ResultCode": "Success", "TaxAddresses": [ { "Address": "118 N Clark St", "AddressCode": "02", "City": "Chicago", "Country": "US", "JurisCode": "1703114000", "Latitude": "41.884132", "Longitude": "-87.631048", "PostalCode": "60602", "Region": "IL", "TaxRegionId": "2062953" }, { "Address": "45 Fremont Street", "AddressCode": "01", "City": "San Francisco", "Country": "US", "JurisCode": "0607500000", "Latitude": "37.791119", "Longitude": "-122.397366", "Region": "CA", "TaxRegionId": "2113460" }, { "AddressCode": "03", "Country": "US", "JurisCode": "5303503736", "Latitude": "47.627935", "Longitude": "-122.51702", "Region": "WA", "TaxRegionId": "2109716" } ], "TaxDate": "2013-07-01", "TaxLines": [ { "BoundaryLevel": "Address", "Discount": "10", "Exemption": "0", "LineNo": "01", "Rate": "0.092500", "Tax": "0", "TaxCalculated": "0", "TaxCode": "NT", "TaxDetails": [ { "Country": "US", "JurisCode": "17", "JurisName": "ILLINOIS", "JurisType": "State", "Rate": "0.062500", "Region": "IL", "Tax": "0", "TaxName": "IL STATE TAX", "Taxable": "0" }, { "Country": "US", "JurisCode": "031", "JurisName": "COOK", "JurisType": "County", "Rate": "0.007500", "Region": "IL", "Tax": "0", "TaxName": "IL COUNTY TAX", "Taxable": "0" }, { "Country": "US", "JurisCode": "14000", "JurisName": "CHICAGO", "JurisType": "City", "Rate": "0.012500", "Region": "IL", "Tax": "0", "TaxName": "IL CITY TAX", "Taxable": "0" }, { "Country": "US", "JurisCode": "AQOF", "JurisName": "REGIONAL TRANSPORT. AUTHORITY (RTA)", "JurisType": "Special", "Rate": "0.010000", "Region": "IL", "Tax": "0", "TaxName": "IL SPECIAL TAX", "Taxable": "0" } ], "Taxability": "false", "Taxable": "0" }, { "BoundaryLevel": "Zip5", "Discount": "0", "Exemption": "150", "LineNo": "02", "Rate": "0.086000", "Tax": "0", "TaxCalculated": "0", "TaxCode": "PC030147", "TaxDetails": [ { "Country": "US", "JurisCode": "53", "JurisName": "WASHINGTON", "JurisType": "State", "Rate": "0.065000", "Region": "WA", "Tax": "0", "TaxName": "WA STATE TAX", "Taxable": "0" }, { "Country": "US", "JurisCode": "03736", "JurisName": "BAINBRIDGE ISLAND", "JurisType": "City", "Rate": "0.021000", "Region": "WA", "Tax": "0", "TaxName": "WA CITY TAX", "Taxable": "0" } ], "Taxability": "true", "Taxable": "0" }, { "BoundaryLevel": "Zip5", "Discount": "0", "Exemption": "15", "LineNo": "02-FR", "Rate": "0.086000", "Tax": "0", "TaxCalculated": "0", "TaxCode": "FR", "TaxDetails": [ { "Country": "US", "JurisCode": "53", "JurisName": "WASHINGTON", "JurisType": "State", "Rate": "0.065000", "Region": "WA", "Tax": "0", "TaxName": "WA STATE TAX", "Taxable": "0" }, { "Country": "US", "JurisCode": "03736", "JurisName": "BAINBRIDGE ISLAND", "JurisType": "City", "Rate": "0.021000", "Region": "WA", "Tax": "0", "TaxName": "WA CITY TAX", "Taxable": "0" } ], "Taxability": "true", "Taxable": "0" } ], "Timestamp": "2015-02-26T04:56:58.0496334Z", "TotalAmount": "175", "TotalDiscount": "10", "TotalExemption": "165", "TotalTax": "0", "TotalTaxCalculated": "0", "TotalTaxable": "0"}

{ "DocCode": "INV001", "DocDate": "2014-01-01", "ResultCode": "Success", "TaxAddresses": [ { "Address": "118 N Clark St", "AddressCode": "02", "City": "Chicago", "Country": "US", "JurisCode": "1703114000", "Latitude": "41.884132", "Longitude": "-87.631048", "PostalCode": "60602", "Region": "IL", "TaxRegionId": "2062953" }, { "Address": "45 Fremont Street", "AddressCode": "01", "City": "San Francisco", "Country": "US", "JurisCode": "0607500000", "Latitude": "37.791119", "Longitude": "-122.397366", "Region": "CA", "TaxRegionId": "2113460" }, { "AddressCode": "03", "Country": "US", "JurisCode": "5303503736", "Latitude": "47.627935", "Longitude": "-122.51702", "Region": "WA", "TaxRegionId": "2109716" } ], "TaxDate": "2013-07-01", "TaxLines": [ { "BoundaryLevel": "Address", "Discount": "10", "Exemption": "0", "LineNo": "01", "Rate": "0.092500", "Tax": "0", "TaxCalculated": "0", "TaxCode": "NT", "TaxDetails": [ { "Country": "US", "JurisCode": "17", "JurisName": "ILLINOIS", "JurisType": "State", "Rate": "0.062500", "Region": "IL", "Tax": "0", "TaxName": "IL STATE TAX", "Taxable": "0" }, { "Country": "US", "JurisCode": "031", "JurisName": "COOK", "JurisType": "County", "Rate": "0.007500", "Region": "IL", "Tax": "0", "TaxName": "IL COUNTY TAX", "Taxable": "0" }, { "Country": "US", "JurisCode": "14000", "JurisName": "CHICAGO", "JurisType": "City", "Rate": "0.012500", "Region": "IL", "Tax": "0", "TaxName": "IL CITY TAX", "Taxable": "0" }, { "Country": "US", "JurisCode": "AQOF", "JurisName": "REGIONAL TRANSPORT. AUTHORITY (RTA)", "JurisType": "Special", "Rate": "0.010000", "Region": "IL", "Tax": "0", "TaxName": "IL SPECIAL TAX", "Taxable": "0" } ], "Taxability": "false", "Taxable": "0" }, { "BoundaryLevel": "Zip5", "Discount": "0", "Exemption": "150", "LineNo": "02", "Rate": "0.086000", "Tax": "0", "TaxCalculated": "0", "TaxCode": "PC030147", "TaxDetails": [ { "Country": "US", "JurisCode": "53", "JurisName": "WASHINGTON", "JurisType": "State", "Rate": "0.065000", "Region": "WA", "Tax": "0", "TaxName": "WA STATE TAX", "Taxable": "0" }, { "Country": "US", "JurisCode": "03736", "JurisName": "BAINBRIDGE ISLAND", "JurisType": "City", "Rate": "0.021000", "Region": "WA", "Tax": "0", "TaxName": "WA CITY TAX", "Taxable": "0" } ], "Taxability": "true", "Taxable": "0" }, { "BoundaryLevel": "Zip5", "Discount": "0", "Exemption": "15", "LineNo": "02-FR", "Rate": "0.086000", "Tax": "0", "TaxCalculated": "0", "TaxCode": "FR", "TaxDetails": [ { "Country": "US", "JurisCode": "53", "JurisName": "WASHINGTON", "JurisType": "State", "Rate": "0.065000", "Region": "WA", "Tax": "0", "TaxName": "WA STATE TAX", "Taxable": "0" }, { "Country": "US", "JurisCode": "03736", "JurisName": "BAINBRIDGE ISLAND", "JurisType": "City", "Rate": "0.021000", "Region": "WA", "Tax": "0", "TaxName": "WA CITY TAX", "Taxable": "0" } ], "Taxability": "true", "Taxable": "0" } ], "Timestamp": "2015-02-26T04:56:58.0496334Z", "TotalAmount": "175", "TotalDiscount": "10", "TotalExemption": "165", "TotalTax": "0", "TotalTaxCalculated": "0", "TotalTaxable": "0"}

Year

Web Sales ('000)

Growth

2014

$304,913 15.4%

2013

$264,279 16.5%

2012

$226,878 14.7%

2011

$197,883 17.2%

2010

$168,895 16.6%

$$

In this world nothing can be said to be certain, except death and taxes.

- Benjamin Franklin

@avadev

http://developer.avalara.com @avadev