Thomson Reuters — ONESOURCE Indirect Tax, Sales & Use Managed Services
From the August 2011 Review of Sales & Use Tax Systems
Best Fit: Mid-sized and larger enterprises with significant sales tax liability exposure across a large number of jurisdictions who want to automate rate management and outsource compliance functions.
Through its ONESOURCE brand, Thomson Reuters offers a collection of corporate accounting and tax compliance solutions and services, including ONESOURCE Indirect Tax. Through the managed services method of deployment, businesses are able to outsource all processes involved with sales and use tax compliance, as well as Canadian GST, including determination of rates, calculation, tracking, reporting and remittance of liabilities. With the acquisition and integration of Sabrix, the system houses a web-based tax engine that integrates with enterprise resource planning (ERP) applications to accomplish a centralized, end-to-end, real-time indirect tax management process.
Basic System Functions:
Since it is designed as an automated outsourced service, most day-to-day use of the program is focused on managerial supervision, reporting and review/approval of compliance forms and payments. After initial implementation of the system, which is guided by support and tax staff from Thomson Reuters with detailed integration and mapping of accounts, ONESOURCE offers a web-based interface that enables in-office or remote access and allows its users to manage reports and information. These functions and additional customizable tools are accessible via a personalized dashboard that enables drilldown to transaction-level and jurisdictional details.
The processing functions, such as rate lookup, calculation and assignment, are performed in real-time by the program as transactions or estimates are created in the business’ ERP. The program is designed for use by one business entity with any number of locations or divisions, as long as they are managed on the same accounting and sales platform.
ONESOURCE Indirect Tax supports all state, local and district jurisdictions in the United States and Canada (more than 13,000), and its tax engine includes address validation and sales evaluation to ensure compliance when transactions include items that may be exempt or taxed differently, or during jurisdictional sales tax holidays. The system can handle simple to complex calculations, including origin to destination states, bundled products, maximum taxes and local tax caps. It also provides management of exemption certificates.
All rules and rates are maintained by the tax law, policy, research and audit staff of Thomson Reuters, which means that the system is always up-to-date with the latest law changes, and historical rates are accessible when necessary, with no maintenance of rate tables by the business.
The system automatically tracks liabilities by jurisdiction and then, after review and approval of forms and liabilities, the consulting service component of ONESOURCE Indirect Tax ensures that all compliance reporting and payments, including zero sum reporting, are handled by the staff at Thomson Reuters. If desired, businesses can also produce fileable print forms for any jurisdiction.