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In a panel discussion hosted by 360 Subscription Billing, Avalara, and Cloud Giants, experts explore strategies for optimizing U.S. tax calculations and compliance using Salesforce CPQ and NetSuite. They address challenges stemming from the South Dakota vs. Wayfair decision, managing economic nexus, and the advantages of a unified tax calculation source. The conversation covers integration use cases, automation of tax exemptions, and the difficulties of aligning CPQ pricing with accurate tax calculations. Avalara’s role in consolidating tax data across platforms is highlighted as essential for enhancing compliance and consistency.

The panel discusses issues related to discrepancies between quoted and invoiced tax rates, particularly in subscription and recurring revenue models. Ryan explains that such discrepancies can be unpredictable and underscores the importance of integrating Salesforce and NetSuite to improve data flow. He points out that tax rates may fluctuate due to factors like deployment delays or changes in customer locations, complicating accurate calculations.

The discussion emphasizes the need for clear communication during the quoting process to set customer expectations regarding potential variations in quoted tax amounts. Christine and Ryan advocate for address validation and accurate quoting to reduce errors, suggesting practices from marketplaces where tax amounts are confirmed at shipping.

An attendee raises a question about calculating tax rates at different transaction stages, which Ryan addresses by explaining that Avalara can provide accurate rates based on current data at multiple points in the sales process. He also discusses the implications of the Wayfair decision on subscription billing, highlighting the need for organizations to assess their systems’ capabilities to handle these complexities.

The key takeaway is the importance of proactive analysis and effective communication in tax management to ensure compliance and minimize discrepancies throughout the sales cycle. Panelists stress the significance of calculating taxes at the individual quote line level and recommend highlighting order start dates on quotes. They also suggest comparative reporting between Salesforce and NetSuite to detect discrepancies and include clear language about potential variances.

The panelists address performance challenges with large quote lines and the need for optimizing product and pricing rules to enhance system efficiency. They highlight the importance of monitoring nexus, collecting exemption certificates, and ensuring timely tax remittance.

Finally, they discuss how integrating with Avalara allows recurring invoices to capture real-time tax changes based on current rates and taxability. The panel encourages businesses to plan thoroughly and collaborate with reliable partners to navigate the complexities of tax compliance. The session concludes with an invitation to reach out to any of the three panelists for more information.