Written by: Jonathan Jordan — Managing Director, Transaction Tax
In the complex world of sales tax management, there is a common pitfall when businesses incorrectly apply sales tax to an invoice, accrue it, and remit it to the taxing authority within that month. A challenge arises when a customer is exempt from that tax—the tax has already been remitted to the appropriate jurisdiction, but remains unpaid by the customer.
This error often stems from implementing a new tax engine or exemption certificate management system that fails to recognize these exemptions or has flawed mappings in place. The result can be significant tax credits, and if not recovered, these credits can impact a company’s P&L.
The credit recovery process can be highly detailed and cumbersome. Most companies lack the resources and expertise needed to navigate this complex landscape on their own. This is where DMA excels—we have dedicated experts who specialize in tax credit recovery and can handle this work efficiently.
Why Rely on DMA for Credit Recovery Services?
Expertise: DMA has a highly skilled and experienced team dedicated to credit recovery. Our experts have a deep understanding of the intricacies of sales tax regulations and the nuances of various jurisdictions.
Resources: DMA provides the necessary resources to streamline the credit recovery process, including advanced tools and software. These resources are crucial for identifying, tracking, and recovering sales tax credits.
Comprehensive Approach: DMA takes a comprehensive approach to credit recovery, ensuring that no credit is left unclaimed. Our experts match up credits with state and local jurisdictions to maximize the returns. And, we offer insight on why the errors occurred and solutions to correct the issues going forward.
Time and Cost Efficiency: Outsourcing credit recovery to DMA saves time and minimizes the cost associated with delegating and training in-house personnel for this specific task.
Recover Your Credits
Don’t let sales tax credits linger on your books—let DMA’s expertise work for you to recover the credits your company is entitled to—which ultimately improves financial health and contributes to a more profitable bottom line.