1. Welcome! Presenter: Robert Goldman

2. Major Topics To Be Covered In This Presentation Sales Tax Priority Logic Tax Holidays Tax Tables for Certain States Reporting Celerant Tax Connect Sales Tax

4. Tax Calculation Priority Tax recalculated each time item is added/modified on POS and Sales Order Follows priority logic, stopping on first applicable: Ship tax code Style-level tax code Dept-level tax code Store-default (“ALL”) tax code If applicable, Tax Connect (Avatax) kicks in on “Pay” Tax Calc Priority

6. Ship Tax Codes If performing any shipping of receipts or sales order Set up ship tax codes for each unique scenario Set up “zero” ship tax codes for each state with no nexus Ship Tax Codes take first priority over other tax levels Only apply if a shipping address on the sale Tax Calc Priority

7. Ship Tax Codes Tax Calc Priority

8. Ship Tax Codes – Priority Logic 1.Dept, Type and Zip match 2.Dept and Zip match 3.Dept “ALL” and Zip match 4.Dept, Type and State match 5.Dept and State match 6.Dept “ALL” and State match Tax Calc Priority

10. Style-Level Tax Codes Predefine special tax codes For styles that cannot use store or dept-level rates Each store defined with unique tax rates within a code Assign Tax Code to appropriate styles Can assign in Style Detail or Change Style Attributes Can use “Auto Pricing” to auto set tax code for new styles Tax Calc Priority

11. Style-Level Tax Codes Tax Calc Priority

13. Department Level Tax Define tax rates at the department level for a store Only for Depts that do not adhere to store’s default rates Tax Calc Priority

14. Default Store Tax Rate applied if not other specific rate applied Always set default rate for each store, even if 0% This is set up by selecting “ALL” as department Tax Calc Priority

15. Dept and Store-Level Tax Rates Tax Calc Priority

16. Tax Holidays

17. Define special tax rates during certain periods Used for “no-tax weeks”, back-to-school tax holidays, etc. Set up tax holidays far in advance Automatically take effect on designated start date Automatically “turn-off” after designated end date Tax Holidays

19. Tax Holidays - Setup Select stores and departments affected by tax holiday Define effective date range Set up tax holidays far in advance Automatically take effect on designated start date Automatically “turn-off” after designated end date Flag a tax holiday to override style-level tax codes - New Topic Header

20. Section Header

21. Tax Tables Some states prefer tax calculation by table Known states include Florida and Maryland Tax tables provided by state tax depts on their Web sites Tables define sales tax to be applied for each price range Tax Tables

23. Tax Tables - Setup Go to Settings, Options, Taxes, Tax Codes, Tax Tables Assign a name and a tax rate to each table Rate defined on tax table is just for reference Enter price ranges and tax based upon state’s tax table Enter the “base” price ranges – usually up to $1 or $2 Assign Tax Tables everywhere tax rates can be defined Tax Tables

24. Tax Reports

25. Standard Sales Tax Reports Print report as summary or detail Summary report grouped Store, Tax Rate, Category One detail report grouped by Store, Category, Tax Rate Another detail report grouped by Tax Rate, Date Build your own detail or summary reports with Report Designer Tax Reports

26. How is the Category Generated? 1.If receipt has tax-exempt reason then store’s state + that reason 2.If customer is tax-exempt then store’s state + “EXEMPT” 3.If shipping address on the receipt then that address’ state 4.If style-level tax-code for the item then store’s state + that tax code’s name 5.If dept-level tax for the item then store’s state + dept 6.Store’s state Tax Reports

27. Additional Reports Receipt Tax Summary Displays each Receipt matching criteria Receipt with Total values including Tax and Rate Tax Exempt Reason if applicable Sales Returns Summary Summarizes Totals for matching criteria Grouped by tax rate and Sales vs. Returns Tax Reports

29. Celerant Tax Connect Uses Avalara’s Avatax Store settings to specify Avatax settings Assign Avatax codes to styles Integrated with POS, Web and Sales Order transactions Tax Connect