Sales Tax and the Apparel Industry: Is it Time to Automate?

The word TAXES in back pocket of jeans.

A guest post from our friends at Avalara.

Sales tax on clothing and apparel can be so confusing! State sales tax laws vary from state to state, which can create significant challenges for retailers to keep everything straight. Even different types of clothing are taxed (or not) differently…not to mention those sales tax holidays that many states now offer, which occur on different days each year.

Our partner, Avalara, demonstrates just how complex this can become in their “Will’s Whiteboard” video below:

Multiple states, multiple risks

If you are only selling in one state, you may be able to keep up, but the minute you start selling in another state or online, you could open your company up to audit risk.

Don’t get caught with your pants down! Check out Avalara’s whitepaper, From Corsets to Choir Robes: Sales Tax Compliance in the Apparel Industry, for more information on just how complex state sales tax on apparel can be.

If you would like to discuss automating your sales tax processes, contact the experts at ArcherPoint.