How a Global Marketing Company Saved Millions Using Proactive Sales Tax Compliance Strategies

About the Company

In a few short years, this Midwestern based marketing company rapidly grew its client base to over 1000+ enterprise brands.  As demand grew for their digital and SaaS products, so did their nationwide nexus exposures and liabilities – subsequently leading executives to seek expert sales tax advisors. 

The Path to Success

The Goal

For many businesses, the 2018 Supreme Court ruling Wayfair v. South Dakota changed the landscape for sales tax remittance. And when state jurisdictions honed in on the taxation of digital products – particularly software as a service (SaaS) –  businesses scrambled for an understanding of their requirements in each state.

There was a real compliance need for the company to tackle the recent and continually changing sales tax rules that impacted its operations across the United States. Failure to prioritize these matters would have resulted in millions of lost opportunities and significant tax liability.

Their exposure was complex, but by leveraging PMBA’s expertise, reduced errors by establishing processes and implementing solutions that saved countless staff resources. 

Key Milestones

  • Analyzed the Company’s Internal Processes to Determine Needs
  • Reviewed Possible Exposure by Conducting a Comprehensive Economic Nexus Study
  • Determined the Product and Service Taxability By State
  • Presented and Implemented Product Solutions
  • Explored Compliance Strategies (Registrations, VDAs, Liability Mitigation)
  • Implemented Software & Exemption Certificate Management
  • Filed Returns
  • Offered Use Tax Analysis, Audit Support & Tax Recovery
  • Recommended Internal Process Improvements for Ongoing Compliance

The Result

Through a proactive and aggressive approach, the global marketing leader became compliant in all states, reduced liability, and established processes to ensure long-term compliance as they continued to grow.

In sum, PMBA helped save the company over $3M through audit defense, profit recovery, and compliance.

Why PMBA?

The company traditionally worked with large accounting firms with exorbitant fees. But with PMBA, they received:

  • Attentive, agile services with “Big 4” expertise at a scalable cost
  • Project managers with vast experience working with state authorities on SaaS-specific matters 
  • Additional cost-saving, recovery opportunities that saved the company millions in cash and resources

State & Local Tax Questions?

Schedule a free, 30-minute consultation with one of our recovery engineers.

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