Whether using a third-party tax engine or another mechanism to determine when transaction tax should be applied, product taxability is often an issue that must be addressed. Products taxable in one tax jurisdiction may be exempt in others. In addition, the rules and regulations governing the taxability of transactions are subject to change. Therefore, the accuracy of your tax engine is diminished unless the tax matrix rules are reviewed and updated on a regular basis.
That’s where our Tax Matrix service comes into play—to address these challenges. As a complete outsourced solution, we do the legwork to determine the correct taxability designation and, ultimately, product code assignment for optimal performance.
DMA’s experts are uniquely positioned to assist in tax research and validation and can also work directly within your tax system to make the updates and provide testing to ensure proper functionality. Overall, we simplify the entire tax matrix coding process. Our tax technology and transaction tax teams collaborate with you to ensure the selected transaction tax engine functions as expected and that the results align with your tax policies.