Introduction
When transitioning from your previous sales tax solution to Anrok, the kickoff call with your Onboarding Manager will involve discussing your Anrok integration's go-live date, which marks the switch from your last sales tax solution to Anrok for tax calculations.
During this process, your Onboarding Manager will ensure you submit the necessary registration forms to Anrok if you are already registered and filing in certain states and determine if you use the Streamlined Sales Tax (SST) program. Additionally, your Onboarding Manager will help clarify the responsibilities for filing returns, especially if the period involves both your previous sales tax solution and Anrok contributing to the tax calculations.
Integration go-live
During onboarding, your Onboarding Manager will help you connect Anrok to your billing system for exposure monitoring and sales tax calculation. Once ready to go live with Anrok as your sales tax solution, it's essential that you turn off your previous sales tax solution in your billing system. Since simultaneously having two systems calculating the tax on your transactions can result in errors, you can only have one tax engine responding with tax amounts in your billing system.
In your Anrok live environment, there are two critical pieces of information required for a seamless transition:
- Anrok integration turn-on date — Since only one tax engine should be calculating tax in your billing system at a time, Anrok must know the date you would like the Anrok tax engine to begin adding tax amounts to your billing system's transactions. When deciding on this date, please note the following:
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- Anrok can connect to your integration for ingest only before turning off your previous sales tax solution and for testing and monitoring your nexus and exposure.
- Before Anrok can start calculating the tax on your invoices, you must turn off your previous sales tax solution in your billing system.
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Tax calculation date for remitting jurisdictions — For each state where you are registered to remit sales tax, you must provide a date to start tax calculation. This start date typically coincides with your Anrok integration turn-on date. The potential exception to this is when a state where a return needs to be filed spans both your previous sales tax solution's period and an Anrok period.
Note
Once you've registered to remit tax in a jurisdiction and provided the tax calculation date, Anrok will begin adding tax amounts to the jurisdiction's transactions. At this point, your previous sales tax solution must be turned off. We recommend picking the first of a month to make the transition and return filing as simple as possible.
Existing registrations
After transitioning to Anrok, our tax team will begin managing your existing U.S. sales tax registrations and filing U.S. returns on your behalf.
To file your returns, our tax team will first need you to complete the following:
- Submit your existing registration(s) in Anrok — You must reflect your pre-existing sales tax registrations in Anrok to ensure you remain tax-compliant and maintain your tax collection responsibilities. It will also help you avoid penalties for late or missing sales tax returns and filings.
- Provide access to your existing sales tax account(s) — To gain access to your account, you must provide our Registration team (registrations@anrok.com) with the account access information (i.e., username and password) for each state's online filing accounts. We recommend having this information handy when communicating with your Anrok Onboarding Manager or Account Executive.
Tip
If you were registered using the SST program, you should note this while submitting your existing registration. SST transition may require additional work by your team to set up non-SST accounts.
Return responsibilities
Transitioning your return management to Anrok is vital to switching from your previous sales tax solution.
You should provide the following guidance to your last sales tax solution regarding filing their returns before transitioning to Anrok:
- Only your previous solution calculated tax — For returns where only your previous sales tax solution was the tax engine - your previous sales tax solution should file the return.
- Anrok & your previous solution calculated tax — If you have a return where both your previous sales tax solution and Anrok contributed tax calculations, you must instruct your previous sales tax solution not to file that return.
Even if you pick the recommended first day of a month to transition from your previous sales tax solution to Anrok, there can be returns that require data points from your previous sales tax solution to enable Anrok to file a complete return. As noted above, Anrok should file these returns since Anrok is the live tax engine. For Anrok to calculate and file a complete return for these situations, you must backfill the relevant transactions and provide a tax calculation date of the beginning of the filing period when submitting the existing registration.
Note
Anrok will re-calculate these prior transactions that were previously calculated using your prior sales tax solution. Anrok will not write to the invoice, but this recalculation could result in slight variances generally due to the different address boundary logic employed by Anrok versus your previous sales tax solution.