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The Story of Avocado

Or

How I determined the right tax and

didn’t end up in the pits

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You want your business to grow…

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You want your business to grow… ...and that can mean changes

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You want your business to grow… ...and that can mean changes

• New products • New locations

• New methods of selling

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You want your business to grow… ...and that can mean changes

• New products • New locations

• New methods of selling

More opportunities for error

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The Story of Avocado is a cautionary tale

It’s a parable for some of the tax complexities created by the simple addition of 1 new SKU.

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sovos.com

The Story of Avocado is a cautionary tale

It’s a parable for some of the tax complexities created by the simple addition of 1 new SKU.

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How are you managing the data and systems needed to be compliant?

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The Story of Avocado is a cautionary tale

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If avocados are this complicated,

what else should you be thinking about?

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Hass will provide some special avocado insights as

we progress

Hass

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It starts with the tree… Avocado trees, like other fruit trees, are taxed differently depending on the state and local regulations.

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It starts with the tree… Avocado trees, like other fruit trees, are taxed differently depending on the state and local regulations. For example:

In California, avocado trees are Tax Exempt.

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It starts with the tree… Avocado trees, like other fruit trees, are taxed differently depending on the state and local regulations. For example:

In Texas, they are completely taxable.

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It starts with the tree… Avocado trees, like other fruit trees, are taxed differently depending on the state and local regulations. For example: In South

Carolina, they are taxable at some local levels but not at the state level.

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Then the whole fruit The whole fruit is completely exempt in approximately 70% of the states that have a sales tax, it is either fully taxable or taxed at a reduced rate in the remaining states.

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Then the whole fruit The whole fruit is completely exempt in approximately 70% of the states that have a sales tax, it is either fully taxable or taxed at a reduced rate in the remaining states. For example:

In Florida, avocados are Tax Exempt.

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Then the whole fruit The whole fruit is completely exempt in approximately 70% of the states that have a sales tax, it is either fully taxable or taxed at a reduced rate in the remaining states. For example:

In Kansas, they’re taxable.

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Then the whole fruit The whole fruit is completely exempt in approximately 70% of the states that have a sales tax, it is either fully taxable or taxed at a reduced rate in the remaining states. For example:

In Virginia and Missouri, they’re taxable at a reduced state-level rate

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Did you know… That I’m a fruit? I am, botanically-speaking, a large berry with a single seed.

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What about guacamole made and served fresh?

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What about guacamole made and served fresh?

Guacamole, when served in a restaurant and whether served alone,

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What about guacamole made and served fresh?

Guacamole, when served in a restaurant and whether served alone, or with tortilla chips,

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What about guacamole made and served fresh?

Guacamole, when served in a restaurant and whether served alone, or with tortilla chips, or inside a burrito

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What about guacamole made and served fresh?

Guacamole, when served in a restaurant and whether served alone, or with tortilla chips, or inside a burrito or sushi,

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What about guacamole made and served fresh?

Guacamole, when served in a restaurant and whether served alone, or with tortilla chips, or inside a burrito or sushi, is subject to sales tax in most states along with an additional meals tax in several others, like Virginia.

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What about guacamole made and served fresh?

Guacamole, when served in a restaurant and whether served alone, or with tortilla chips, or inside a burrito or sushi, is subject to sales tax in most states along with an additional meals tax in several others, like Virginia. It is also is subject to a meals tax in some jurisdictions that don’t have a sales tax, such as New Hampshire.

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Did you know… Hass is the most popular variety of avocado grown around the world. The Hass tree was discovered in the backyard of a mailman named Rudolph Hass in La Habra Heights, California in the 1930s; he patented his tree in 1935. The Hass avocado had to wait about 35 years before it really became popular in the 1970s.

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Mixed into a Cocktail?

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Mixed into a Cocktail? The Avocado Daiquiri you are served in a bar or restaurant will be subject to sales/meals tax in most states just like guacamole In several states, such as Minnesota, an additional liquor tax will apply to the cocktail.

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Mixed into a Cocktail? The Avocado Daiquiri you are served in a bar or restaurant will be subject to sales/meals tax in most states just like guacamole In several states, such as Minnesota, an additional liquor tax will apply to the cocktail.

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In hand cream? Avocado moisturizer is taxable in all states that have a sales tax as a sale of tangible personal property

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In hand cream? Avocado moisturizer is taxable in all states that have a sales tax as a sale of tangible personal property

As cooking oil? Treated as a grocery item, the same as the whole fruit.

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In hand cream? Avocado moisturizer is taxable in all states that have a sales tax as a sale of tangible personal property

As cooking oil? Treated as a grocery item, the same as the whole fruit.

As a dietary supplement? Supplements are exempt in about 1/3 of the states that have a sales tax, such as New Jersey, Illinois and Utah, and taxable in the rest.

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And where was it purchased?

Although the rules would be the same whether purchased online or in a store nexus would need to be taken into consideration…

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And where was it purchased?

Although the rules would be the same whether purchased online or in a store nexus would need to be taken into consideration… …But that’s a different issue entirely.

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All of those questions from one fruit

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Choose Taxware from Sovos Compliance to manage this complexity

Superior Tax Content – 210 million tax rules

managed – 200 international localities

supplying tax research – 5,000+ product codes – 20,000 tax rate updates

annually – 13,000+ jurisdictions – 281 rates & rules

sovos.com

Choose Taxware from Sovos Compliance to manage this complexity

Superior Tax Content – 210 million tax rules

managed – 200 international localities

supplying tax research – 5,000+ product codes – 20,000 tax rate updates

annually – 13,000+ jurisdictions – 281 rates & rules

Technology built for retailers – Product-and service-based

taxability – Invoice-level processing – Rounding and bracketing – Thresholds and limitations – Delivery charges – Sales tax holidays – Exemptions

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Learn more at sovos.com/retail-transaction-tax-solutions

All images courtesy of Veer (www.veer.com).