Hello everyone, good morning, afternoon or evening, wherever you're joining us from today. I hope everyone's enjoying the changing of the seasons. It's looking really nice out here in Arizona. Thank you for making the time to join live today or taking the time to watch the playback. My name is Gabriela Hernandez. I'm your CISPRO Alliances manager and I'm thrilled for today's solution showcase. today. We have Avalara, of course, who's a longtime certified CISPRO ISV partner now. I want to say something like 15 years. And I'm privileged to introduce our great partners, Nazeeh Shafizadeh, a senior sales executive, and Michael Dominguez, senior strategic alliances manager from Avalara, who will discuss how these integrated tax solutions can help our CISPRO customers navigate that really big, really complicated and constantly changing world of sales tax, tariffs, and tax compliance code. So first, let's set the stage with some housekeeping rules. And yeah, rules of engagement. Perfect. Yep. All attendees are going to be muted. This webinar is being recorded. And then that playback link will be sent out to everyone that's registered as soon as possible. But typically, we see a couple of business days. And yeah, feel free to set it out in the Q&A window. And we'll address those questions at the end of today's session. So without further ado, I'll leave you in great hands with our partners, Michael and Nazeeh. Thank you so much, Gabby, for that great introduction. As Gabby mentioned, my name is Michael Dominguez. I'm the senior strategic alliance manager with Avalara. This summer, I'll have been with Avalara for three years. My experience is in the distribution and manufacturing space. I ran a large winery for about 10 years. And I'm also based in Arizona. And I'm also based in Arizona. But further south than Gabby, I'm down in Tucson. And it's nice to get a little bit of rain, because we don't get to see that much of rain in the desert. Excited to present to you all today. So I'll let Nazeeh introduce herself. Thank you, Michael. Hi, everyone. My name is Nazeeh Shafi Zadeh. I've been with Avalara for a little over 10 years now, and been in the software space for a little over 15 years. But I really, really appreciate CISPRO having us join today. So thank you so much for having us present to your customers today. I am based out of Orange County, California. And it's great to meet everyone and looking forward to presenting today. Awesome. Thank you, Nazeeh. So we're just going to go ahead and jump into it. Here's our agenda. We're going to cover the current state of managing sales tax compliance, talk about some sales tax complexities, We're also going to touch on consumer use tax challenges, because that's some of what you may be experiencing as manufacturers. And then the really hot topic of the day, it seems that's been of the day for every day for the last couple months is trade and tariff whiplash. And we do have some polls. So I encourage you to answer the polls if you're up for it, because it helps us just provide some good insights and can also just generate some more conversation as we get through our conversation as we get through this presentation together. Okay, so for those of you who are not familiar with Avalara, we're celebrating our 21st anniversary this year. And we are a global sales and tax compliance company. Here are just some key facts and figures. We've executed more than 51 million documents certificates in 2024. We have more than 1200 signed partner integrations. The number that really astounds me, the more and more I work here at Avalara is that we serve over 43,000 customers from 75 countries. I think it's almost up to 80 countries now. So you can see that we are a global company. Syspro also obviously a global company, and we really value our partnership together by help providing value within the Syspro ERP to help address your sales tax compliance challenges. You can see we're a technology. You can see we're a SaaS company. So you can see there, 55 billion AvaTax API calls were made by customers in 2024. It just gives you the volume and just a bit of an overview about our company. And I will move on to the next slide. So this first part of the presentation is about managing sales tax compliance. And I really like to put these five basic steps in front of you, before I go into economic nexus, exemption certificate management, and then just an update on tariffs. Because I think if you just have just a good grasp of knowing where your nexus is, and Avalara has a nexus case study we could help you with. Moving left to right, number two, just being able to, once you realize where you have nexus, to register, to collect and remit sales tax. Avalara can help that with Avalara licensing. You want to track those exemption certificates, especially as manufacturers, especially as manufacturers, especially as manufacturers, because you may not have a sales tax obligation. But you definitely will probably have an exemption certificate management requirement. Then we can also help with calculating your sales tax, if that is a requirement. And that is done through our integration with Syspro. And then obviously, once you collect those sales taxes, you have to remit them, and we can help you with your returns as well. So a lot of what I'm going to talk about economic nexus thresholds, the bits and different pieces. I'll touch on consumer use tax in this presentation. But it just gives you a little bit of an overview, or kind of like the core ways that you should be thinking about managing your sales tax compliance, and some of the steps where Avalara can help. So with that being said, I'm going to throw this poll up here. Or actually, Lauren is we're going to do our first poll. And so the question for you all is, hopefully making this a little engaging for you, is what is your biggest tax compliance challenge? You could check all that apply, but I touched on, you could see here the choices, touch on all those steps that I just went through. Is it filing and remitting? Is it tax calculation? Is it managing your exempt customers? Is it use tax? Is it consumer use tax? Or is it just even knowing where you may have nexus? So I'll give you all just a little bit more time to select one of those or as many of those where you think you have a tax compliance challenge. And then again, if you want to ask any questions in the Q&A, we can address those later or can even address them now because I'm just trying to make it a little more conversational in this presentation. So I think we should have results here soon. Amazing. This is great. And thank you so much for those who responded to the poll. You can see there is a very high interest in getting some support and tax calculation and exempt customers. And we're definitely going to touch on that. Use tax, maybe not as much. But obviously, since filing and remitting is a key part of making sure you're filing returns in every state's different, right? With monthly, quarterly, or annual. This gives us a good understanding. And we're going to now dive into not only AVA tax, sales tax, economic nexus, but economic exception certificate management as well. So let's go here. All right. So to give you a little bit of the background, sales tax. Sales tax is very important for all the states in the United States because they get about 30% of estate revenues comes through sales tax, right? So I just like laying this out, making you all aware of that for why it's watched so closely. And with that being said, when states need revenue, they will invest in sales tax audits. So these are just some ways. So these are just some ways. We'll be talking about all the things that states are going to be talking about. In my opinion, these are just some ways that states use auditors to really monitor and focus on noncompliant businesses. They could be hiring more auditors. They could be sharing information with other states to target noncompliant businesses. They could be increasing out-of-state audits. So you can see that usually what happens is when states aren't getting a lot of federal support, there's increased scrutiny on identifying companies that may not be compliant and be collecting and remitting their sales tax because it is such a big source of revenue. So just keep that in mind, especially times changing like they are. And businesses always have highs and lows. But it's just something to definitely be aware of that there's different ways where when the states need revenue, they will invest in these different methods for their sales tax audits. Okay, so the basis of really understanding your sales tax compliant requirements is really understanding where you have economic nexus. Okay, so economic nexus is a relatively new term because for those of you who don't know, in 2018, there's a Supreme Court ruling in favor of South Dakota versus Wayfair, where the nexus or requirement is for filing sales tax prior to 2018. It was if you had physical nexus, right? If you had a building in the state. What this Supreme Court ruling basically mandated was that states can now require your sales tax be collected and remitted based on the economic threshold, how much business you do there, the amount of sales and or the number of transactions. So you can see how you can see how you can see how you can see how if you're managing your business. You're a manufacturer. Let's say it gets more and more complicated the more states you're in, right? Because you have different requirements in all of these states. So you are required to collect and remit tax in states when your business meets these minimum thresholds and sales or transactions to be compliant. And this slide just includes as well exempt sales tax inclusions for gross sales thresholds. You could see there states that have exempt sales included in gross sales and states where exempt sales are not included in gross sales. You even have states where it's mixed, so that makes it even more complicated, right? Or you have states such as such as Oregon and Montana that do not have a state sales tax. So the key that I want to really just foot stomp or make you all aware of is that with the complexities of sales tax compliance, all the states are always constantly updating their different rules. And more importantly, there's a lot of jurisdictions out there. There's over 13,000 sales and use tax jurisdictions in the United States alone. And I'll tell you a little bit about my my personal history. When I first started with Avalara. We had onboarding trading. And we had to figure out what was a company's sales tax requirement for an area of Colorado. And those of you who've done business in Colorado, it's very complex. You know, there's not only state, it's local, it's municipal, all of these taxes. And so we had a worksheet where we had to try to figure out what the tax was, right? And nobody in our group of 30 onboarding class got it correct because there's all these little taxes that have to be associated with getting it correct in the state of Colorado. And that's why we use automation, right? We're a SaaS company that helps you, especially with our integration with SysPro, automate and navigate the sales tax complexity. So I do like sharing this slide. Basically, it's little dated since 2023. But again, it shows you all of the different rate and tax updates, almost 12,000 in 2023. And also shows you some of the taxability updates in the United States and Canada. Also taking into account almost 100 ,000 sales tax holiday rule updates. And this is really something to consider because, you know, a lot of states will do these sales tax holidays to hopefully increase sales, right? Increase revenue for businesses, help the economy. But it's really hard to keep track of if you're doing it manually as a manufacturer. And Avalara helps you automate that sales tax compliance. Okay, so what is your sales tax obligation and what is Nexus? So I already explained why since 2018, you know, Nexus includes economic Nexus. But your business activities trigger an obligation to collect and remit taxes in the states where you have some of these activities. So again, economic activity, we talked about physical presence, even referrals or individuals or businesses that refer potential customers, or affiliates, which could be another company that provides services on your behalf. So there's a lot of rules out there, right? That are really hard to keep track of. And we'll talk later on in the presentation about some of Avalara's products and services to help address those tax compliance needs. So I'm going to spend a little bit of time on this slide, because having ran a large manufacturer, a large winery, and we did a lot of distribution as well. It's important to understand some of those triggers, if you will, that you as a growing manufacturer or business may quickly see, especially if you're growing rapidly, and how tax automation could help. So if we look at managing growth, maybe you're a manufacturer that's been primarily been doing business to business, but now you're looking at B2C. What happens if you're doing business globally, right? Now as a manufacturer in the B2C space, and especially with all the changes that I'm going to talk about with respect to tariffs, there's got to be a way to automate that. And that's how Avalara can help, because it's very time consuming to do that type of landed cost, HS tariff code to account for all that if you're doing it manually. So we also have the digitalization of accounting, live reporting, artificial intelligence, machine learning. We have government action. I talked about economic nexus and the Supreme Court ruling with Wayfair, making tax digital, transactional authorizations, anything that's happened with the different rules and regulations that take place, or that are mandated by our government. We have changing regulations, right? Now in Europe and other places globally. Any e-invoicing is becoming a requirement. And Avalara does have a solution for that, that is actually live overseas. And then there's complex industries as well. Perhaps you are a beverage, alcoholic beverage manufacturer. That's why I was hired at Avalara as an expert in the wine industry space. And handling beverage alcohol compliance needs. And that is a very complex field. I saw this or read this morning that President Trump is threatening 200% tariffs on wines coming from Europe. So you can imagine the impact that would have on local liquor stores, businesses here in the United States. I touched briefly on cross-border commerce, looking at those ever-changing import tax rules and rates, that proper product classification complexity. And we talked about HS tariff codes, those landed costs that we can help with our integration with some of the e-com checkout platforms, and then customs duty and import tax as well. So I'll lean on Nazi here for a second, if she doesn't mind, because she works with a lot of customers on the sales side. Would you like to share, Nazi, maybe just some of the needs or challenges that you see with folks who are looking for Avalara and to support their tax compliance needs? Yeah, so what I hear most of the time, a lot of times is where, you know, where should we be registered? Or most of our customers are exempt. So does that create a obligation for us to register in the state? So I think Michael kind of touched on that and showing those slides where for economic nexus, those exempt transactions can also count towards it. So you may, have some nexus in some states you may have some nexus in some states you may not know about where you may need to be collecting those exemption certificates. And we'll talk a little bit later about some tools that we have, some free resources we have for you so that you can make sure you have a good, you know, grasp around where you may have some exposure. And so we'll provide some of that. But as far as, you know, we understand a lot of the companies here are manufacturers, manufacturers, and many of their customers are exempt from paying sales tax. So making sure that you have those exemption certificates on file, if you don't already have them today, we certainly have some tools that can help you with ensuring you can get those and have them on file so that in case of an audit, you have that to provide. So those are some of the areas that, you know, I hear a lot around when I'm talking to different companies who are manufacturers and distributors. But, you know, certainly the sales tax piece of it is a big topic as well, because there's over 13,000 taxing jurisdictions. And as your business starts expanding, and you have economic growing economic nexus, making sure that you're collecting the correct amount and remitting the correct amount is going to be super beneficial to either have a process in place or an automated solution in place or an automated solution in place to do that. Thank you so much, Nazee. And as you were speaking, it's also important, like within your companies to think of like who, like, manages your compliance, right? Because maybe someone from IT is updating some of your product codes, or maybe in your, obviously, we work a lot with your accounting departments, right? But think about who on your team at your company has any type of touch point on compliance, because it's always good to get the inputs and kind of see, you know, like Nazee said, for exemption certificates, and as an example, you may have a customer's exemption certificate, but is it up to date, right? And like, who is responsible for making sure that those are updated? And then having run a large business, I think it's always worth while to kind of do these like self checks when you can to just check on your compliance, because it's better you're doing that internally and checking on that before the auditor shows up, right? So just knowing your plans and processes for remaining compliant in the world of tax compliance. So I know we spent a little bit of time on that slide, but I think this is a really good one to just take away because again, these are like triggers that should hopefully help you and your business think, oh, I should maybe take a closer look at that and identify where we may have some exposure, right? All right, I like the slide, not only because the guy falls from the ladder, and it gives some action and presentation and liveliness to a PowerPoint presentation, but it really does help step you through as you run your businesses, whether manufacturer, distributor. This is a survey that Avalara did last year, and I think it's really helpful because it shows some of the major pain points that manufacturers specifically are experiencing. Number one is keeping up with changing tax laws. I can definitely share from personal experience, it was extremely difficult running a large winery I did. We shipped in all the states you could at that time, which was about 40. And I had to manually go to each state's website and see what the requirement was for that state, whether it was a volume requirement for the certain amount we had to pay per or call it. And it took a lot of time. And it took a lot of time. It was basically a full-time job keeping up with the changing tax laws. A really cool tool that Avalara has, it's called Avalara Tax Research, and it'll allow someone from your company to go in. It's like a Google of tax, but when you're going in, you know you're getting the correct information, then going to Google and just getting whatever the top hit is, right? And then we also have the next one going down, stepping down the ladder is tracking and managing your nexus, right? So understanding where you have economic nexus, managing those exempt sales. We've talked a lot so far about exemption certificate management, sales tax calculation. Avalara can help that with our integration with Syspro and AvaTax that accurately can assess your sales tax rate to the rooftop level. Our engine is very robust. And accurate. And accurate. And then as we get to the bottom of the ladder, remitting those sales tax, you obviously want to do your returns. And then those international tax requirements, which who knows with what's happening lately, that could be pushed up the ladder. So again, I like this, maybe just a good refresher to like, are you experiencing in your company's kind of the similar pain points? And maybe you have a, you do have a serious exemption certificate management need or requirement. to manage those a bit better. And so that's a higher priority for you and your company. All businesses are different. But this is just from our survey to show some of the pain that companies are experiencing when trying to, trying to manage tax compliance. All right. I really like this slide. I know we've talked about exemption certificate a couple of times, but I think this, this infographic and as we step through is, it will really like, be like, wow, be like, wow, a wow moment for you, hopefully. So this is a cost of a missing exemption certificate. And it's just an example. Let's say your business is being audited. Okay. The auditor reviews a one month sample for an audit period of 36 months. That's step two. So step three is the auditor finds a $15,000 sale with a missing or invalid certificate resulting in uncollected tax revenue of 8% or $1,200. So missing one exemption certificate. So down to step four, the auditor assumes this amount of uncollected tax for each month during the audit period. Okay. That's the assumption made. So if they do their math on the auditing side of this, when they're doing their audit, they assess that the uncollected tax fine is calculated at $1,200 times 36 months or $43,200 and penalties. And that doesn't include the audit penalties as well. So in this example, a single certificate could cost $43,200. Right? So just, just again, reinforces the importance, just making sure that you're correctly managing your exemption certificates that you understand or have a good process in place, making sure that they're up to date, right? That they haven't expired. Again, just a good takeaway slide for you all to reference, because this is a very costly example. Okay. I am going to pivot now to consumer use tax challenges. This is like the flip side of sales tax, right? So consumer use tax, it's for especially manufacturers, I've seen that this is really a self assessment. It's a very manual process. And consumer use tax rules are complex, and they are subject to change. And that the audit risks are pretty high when it comes to consumer use tax. So in this next slide. Again, as it steps through, I like this example, I'm not going to spend a lot of time on it. But again, consumer use tax being the off ignored flip side of sales tax. Like this is an example of how your business can save money by getting use tax right. The example is a business headquarters makes a purchase of $10,000 in the computer equipment with the intent of shipping to the branch office, right? So without automated use tax management, it's just being assessed as that use tax being purchased at the headquarter location, right? And there's your total tax amount because a headquarter local tax is 10.25%, right? But with automated use tax management, it's making sure that it's properly, the use tax is properly being assessed. So if you're not going to be assessed at those branch locations, which actually had a lower tax rate, and that could be a saving of $275. So this is just a really small example. But I think it's a good example, especially if you have multiple locations, which are all your businesses have computers, right? So just keep in mind that consumer use tax obligation, it is an obligation that you have as a manufacturer if you do have use tax needs. And Michael, I could just add one thing to that is what I hear a lot is often companies aren't really looking at their use tax because they don't know that they have a use tax liability. So on those purchases that they're making where their vendor is not charging them tax because they may not have nexus in that state. So it's on the onus of the company to self -assess that use tax and report that to the state. But then there's also times where the vendor may be over or undercharging as well. So it's really important, just like sales tax, to get the use tax correct because you could be overpaying or underpaying and either one is not going to be good. Michael, thanks, Nazzy, absolutely. So Avalara does have a solution for consumer use tax, we call it AvaTax for Accounts Payable. It just helps you streamline your consumer use tax management by automating it. And so we'll just step through from left to right, but we help identify, calculate, and correct, as Nazzy just mentioned, those overcharged and undercharged vendor use taxes. And then also it's centralized, it can be centralized within AvaTax or also be done as a batch import. And then it just provides you as a manufacturer with a single location to view, act, and report on purchase transactions, giving you that dashboard. And then seamlessly works with Avalara applications, including vendor exemptions and returns and reporting. So any chance we have at helping automated tax compliance, especially if you're doing everything manually, it's definitely just something to consider and have a conversation with us about. Okay, I know this is a very busy slide. But we talked about, we covered a lot, right? We talked about economic nexus, we talked about managing your tax compliance, those five steps. If you could remember those at the beginning of the presentation. We talked about exemption certificate management, right? We talked about exemption certificate management, right? And the cost of missing one exemption certificate. And then we talked about consumer use tax, which like Nazzy mentioned is sometimes overlooked, but can potentially help your company save money and just be more accurate. So within Avalara, we have our core products. We talked about exemption certificates, vendor exemptions. We talked about AvaTax, tax calculations, and we talked about returns and reporting. We talked about returns and reporting. It's coming here in the United States eventually, but we'll also can support e-invoicing and live reporting. So you all are familiar with that. Those are our core products to help you streamline and become more efficient and managing your tax compliance. But we have a lot of supporting products as well. So remember when you identify that you may have an economic nexus in a state, you'll have to get registered in that state in order to collect and remit those sales tax taxes. So we can help you with licenses and registrations. Tax research. That's an Avalara tax research tool I told you, which I would have loved when I was doing the compliance at the winery I ran because it would be able to simply just let me know what are the tax implications in the state for alcohol. We have item classification. Those are HS tariff codes. We're going to touch briefly and give you a tariff update here at the end of this presentation. Cross border. We help you calculate those landed cost. We help you calculate those landed costs if you have any type of e-com platform on checkout. We also support, not a lot of people know, 1099s and W9s and property tax as well. We have integrations. Obviously, our key integration was Syspro with AvaTax and ECM. But we have integrations and APIs across the different tech platforms, if you will. We also have managed professional services, streamlined sales tax. Did you want to touch briefly on streamlined sales tax, Nazzy? Yeah, sure. I just wanted to, it looks like Andrew had a question regarding does Avalara have a product for UK VAT MTD? And yes, so the orange box on the upper right, e-invoicing and live reporting is our solution for VAT reporting in in the UK. So we certainly can support you there. Yeah, I'm sorry. I missed that question. Is there any more questions out there? Not right now. Okay. Hopefully we'll get some more. I think we have a couple more polls coming too. Did you just want to touch briefly on streamlined sales tax, Nazzy? Yeah, so Avalara is a certified partner for the streamlined, the SST program. And the SST program can be very beneficial for companies that are doing remote sales in a lot of different states where Avalara is able to provide some free services such as free filings in those states. So if you are in remote seller in multiple states, having to collect a remit sales tax, the streamlined sales tax could be a good option to look into. It's been around forever. However, since the Wayfair decision in 2018, they've changed some of the requirements where it used to be where you have to register in all the SST states, which is the 25 states in order to be part of the program, which helps you benefit from saving money on the filings. But now they've changed there to where you can register only in the states that you do have Nexus in as well. So there's the program has been around for a very long time, but it's gotten much more popular in the past five, six years as companies that have been around for a very long time. companies have more obligation to sell to register in more states due to economic nexus. So I would say if your company has a lot of economic nexus, the streamlined sales tax would be a great benefit for your company to look into. Thanks, Nazzy. We also have our sales tax risk assessment. We have a free sales tax risk assessment to offer you all. It's a $4,500 value. I think I mentioned a little earlier, it goes back one year to give you a bit of an understanding of where you may have economic nexus. And we can definitely help provide you with a link to that if you're interested in completing that. And then some of the other managed professional services are obviously implementation, training and support. So the latest news in trade and tariffs. We have a poll. We have a poll. Nice. All right. So this is poll number two. Are you planning to adjust your supply chain due to impending global trade changes, duties, tariffs, regulation changes in any of the following ways? Either diversifying suppliers and manufacturers outside of China to reduce risk, switching the local suppliers, switching the local suppliers, switching the local suppliers and manufacturers, investing in new trade technology or tools for supply chain management and trade compliance, rethinking distribution strategies such as new fulfillment center locations, carriers, shipping, other, or you don't know yet. So I'll give you a little bit of time to look at those options. This one was a single choice. And again, Avalera being a global company, I'm going to touch on some tariff updates here shortly after this poll. And then also just briefly touch on some ways Avalera could provide you some support when it comes to any type of cross-border operations you have going on, or really being able to have being able to manage some of these tariff repercussions in your company. All right. I think we'll have a result here very shortly. survey says, so switching to local suppliers and manufacturers. Yeah, that's really interesting. I think, I think we may be seeing a lot of that, right? The, the move towards onshoring and some of the implications that, that may happen there. And so, and so, and so, and then also there was one with moving suppliers, manufacturers outside of China as well. So thank you everyone who replied to the poll and we are going to touch on trade and tariffs now. Okay. Why the whiplash? So increased tariffs, removal of de minimis, retaliatory action, Gwyn. So you all are probably familiar with this. I'm probably not telling you. I'm probably not telling you anything you don't know when it comes to the overall reasons by our current administration, but in an attempt to stop the flow of fentanyl and illegal migrants in the United States, President Trump signaled sweeping changes that could potentially import, impact cross-border trade with major partners, Mexico, Canada, China, everyone you're hearing about in the papers and online, because these tariffs are just, seems like they're changing daily. So increased tariffs, so increased tariffs, removal of de minimis, retaliatory actions have all been implemented and they've paused, you know, are we doing tariffs? Are we not doing tariffs? But most products traded between Canada, Mexico and the US are free from tariffs under the UCMCA. That is the old NAFTA, the new name for the, the old NAFTA agreement that was negotiated actually in Trump's last term. But until now. So, and Avalara has a number of different links, we're keeping, we do, we do, for those of you who are interested, we do a tariff Tuesdays. I think our next one, our next one's next Tuesday. I don't know if it's going to be a continuing series or not, but they're really informative. They're done by our head of, of cross-border operations and really dives into the details. I'm just going to give you an overview, but if you're, it's a great update because there is so much information out there and you're just trying to figure out what has really happened tariff-wise and what hasn't. And our Avalara team does a really good job of distilling that for you. Okay. So we're going to touch on three countries here, three main countries, and then what could be upcoming. Again, some of this information here may be already dated because this is current as of 10 March. You know, I mentioned the threat that our current president had to Europe of 200% tariffs on European wines. So I guess it'll get, you know, Americans drinking American wine. So that's good. But for China, all articles produced and shipped from the PRC and Hong Kong are subject to an additional 10% tariff that was affected for February. Retaliatory, there was a 15% on coal and liquefied natural gas products and a 10% on crude oil that took place on 10 February. And then in China, charge an additional 10% charge an additional 10% starting March 4th. Then on March 3rd, a new executive order stated that would increase to 20%, but there was no effective date. Again, constantly changing a moving target. Please dial in when you can to our Tuesday tariff updates as well. Just wanted to have an overview for you because this slide show will get sent out and it just gives you kind of like a strategic look at some of these tariff implications. So Canada, 25% tariff and all products from Canada took effect for March through 6th March. There was a pause for goods under the USMCA agreement. The duty-free de minimis treatment will remain available for now. And then some of you are probably familiar with the jump in electricity in some of our northern states because Ontario charged 25% more for electricity to 1.5 million Americans, which took place on 10 March. In Mexico, one of our biggest trading partners. In Mexico, one of our biggest trading partners, 25% tariffs from all products. Same with what happened with Canada and duty-free de minimis treatment remaining available for now. I think April now, beginning of April, we're going to have more updates and changes to tariffs for Canada and Mexico. Others upcoming, this took place 25% on steel and aluminum articles from most countries on 12 March. You can see that upcoming April 2nd date, 25% on automobiles, semiconductors, pharmaceuticals, and timber. So think about that for manufacturers who may need some of those parts. And then Trump administration could impose reciprocal tariffs on Canada for dairy and lumber. And you can see that April 2nd date is when President Trump vowed to impose reciprocal tariffs on all other nations that place duties on US goods, which is a lot. So I know. So I know. So I know that's a lot of information. I know it's constantly changing, but we at least wanted to provide some updates for you. So can your business keep up with these changes? Out of date trade compliance information and tariff rates could result in any of these, you know, shipments being held up in customs, penalties and fines for non-compliance, under overcharging customs duties and import, and just the poor customer experience, right? And when we talk about that, that's even before items are shipped overseas. If it's a poor cart experience, because you don't have an integration with Avalara to calculate, you know, the duties and the tax rates. So you're not alone. So 55% of our respondents find cross-border e -commerce business environment very challenging. And it is very challenging. And it's just going to get more challenging with these current tariffs. Okay. I think we have a question slide. So Gabby's going to take over from here. Yeah. First, thanks, you know, for covering that in greater detail. I did see a follow-up question here by Andrew and Nazy. I did see that you answered that. Do you want to elaborate a little bit more on that? Maybe just to shed some color on that particular question and help inform the rest of the audience? Yeah. So Avalara does have that reporting for MTD. So it is a cloud-based solution. It is recognized by the HMRC to help you stay compliant around all these new regulations in different countries. And I know UK is a big one. So we have an entire team that is actually dedicated to this just because the complexity in other countries is almost for the reporting is almost just as complex as the U.S. So, you know, you may be able to get the VAT calculated correctly because there's typically, you know, one VAT rate, but the reporting becomes a lot more complex. So Avalara does have a solution. And I'd be happy to follow up with anyone who would like to get some more information on that and provide you with information and even go through kind of a consultation on that as well. Yeah, that's really helpful. Thank you so much, Nazy, for a quick overview. And I did get a couple of questions in directly to me, but, you know, I'd like to encourage anyone that's on this call, on this showcase today to, put your questions in the chat. We do still have a few minutes left here to review some of your inquiries. Oh, there we go. I see Lisa, can you send me the links for tariff updates? We can put that in the follow-up email with the webinar recording. Maybe we can have a link for those interested in joining those Tuesday tariffs meetings. Perfect. Yep. Thank you, Lauren. And then another question here from Anonymous. Will you guys provide us with pricing Struis if we want to upgrade our existing account to cover some of these features that you talked about? Yes. Absolutely. Yeah, absolutely. If you're a current customer, definitely reach out and we'll work with you. Make sure you're matched up with the Avalara customer account manager because they're, there are a lot of products and services that, that Avalara has to offer that you may not have been aware of until this presentation, right? So we're happy to help. Great. Thank you on that. I've got another one here that came in direct. When you hit an economic threshold, are you automatically registered in the state? So once you've hit the economic nexus threshold, then you do have an obligation to get registered in that state. And Avalara does have services to help you with the registration process to get registered in those states. But we also have tools to help you identify too once you've hit those thresholds. So if you are using Avalara today, you are integrated, then you have our economic nexus monitoring that's happening in real time. And you're getting updates in real time. And you're getting updates in real time. If you hit those thresholds. And then it would be next step would be to register in the state. And Avalara can help you with that. You're not using Avalara. You could certainly use our free sales tax risk assessment to identify some states where you may have or where you may have hit those thresholds so that you have more visibility for that. Yeah. And I think to expand on that a little bit more, we not only have that free sales tax risk assessment, but there's also a premium sales tax risk assessment that goes back five years. And I think, Nazzy, did you want to talk about, is it VDAs as well for, and just touch on that briefly? Yeah. So our standard sales tax risk assessment is going to look one year back so that it gives you a good glimpse as to where you potentially hit those thresholds. We do have a premium sales tax risk assessment that's going to look back five to 10 years, actually, to ensure if there is any states where you do have exposure, where you need to get registered and you have some past liability. We do provide VDA services, which is voluntary disclosure agreement, where we would get you registered anonymously with the state and then also work with you to get compliant and compliant within that state. So depending on what your needs are, we have different options to help you with making sure that you get compliant and then moving forward, you stay compliant. Great. Thank you for that. And it seems as though that sort of stirred the conversation because here's the next one. Where do you see most businesses being audited and receiving fines? Yeah. And that's a great question. So, you know, it's each business is going to be a little bit different as to, you know, where their business activities are. So there's some of the more aggressive states. I think everyone knows about like California, Colorado, New York. And, you know, where we see most companies are going to have, you know, the biggest exposure is really going to be where are they doing business activity? And again, having that either, you know, nexus analysis or having a glimpse into where you're having economic and physical business activity will ensure that you can get compliant, stay compliant in those states. Yeah, that's all. Thank you. Oh, go ahead. Yeah. No. And I just think to add on to that, like, like I mentioned during the presentation, you know, 30% is the revenue that comes from, from sales tax for on average throughout the United States. Right. So it's definitely a big source of revenue that the states are looking for. So it's incumbent. I would say this is just me personally for like any business, if I were running it to just make sure that I'm minimizing my exposure. Right. And to understand where that where I may have economic nexus. And obviously, it's going to be most exposure, like Nazi said, where the states where you're going to be doing the most businesses. Right. So. Great. And then this last one seems to be more related to best practices. It says there are some states that include expiration dates on their certificates. Do we need to make sure that we have the not expired certificates from the customer for those states? Or is it OK if we get a new one every few years? So best practice is to have a valid and up to date exemption certificate on file for your customers. If you're no longer working with those customers, you certainly want to have those certificates in case of an audit, because auditors can go back, gosh, anywhere between three to 10 years, depending on the state. So again, best practice is ensuring you have a valid and up to date exemption certificate or going through that exercise of your certificates. And if there are any that you don't have or are missing, you put a process in place, you know, or through automation to ensure that you'll be notified when those certificates are expiring. So I know we have, you know, a lot of customers using our exemption certificate management solution, but there is automation put in place there so that you are notified when the customer's certificate is expiring. But it also sends out an email to your customer as well, an automatic notification to your customer that they need to get a valid and up to date exemption certificate back. That's awesome. Thank you. That's awesome. Thank you. And then one just for myself and I guess the rest of everyone, the Tariff Tuesdays, is that like a webinar? Is it like a board, a newsletter? It's a webinar. And I don't know if the last one is going to be next Tuesday. They may continue the series. If not, we'll also send you a link, Lauren, where we can just have updates to our blog, because I know we're updating with all the different changes on our blog, kind of any tariff updates. That's really cool. You guys do that. Awesome. Well, I don't see any further questions. So I think we can leave it here. So yeah, I mean, I'm sorry, go ahead. I'm sorry. We had one last poll for those of you who stayed. Oh, okay. You get to, it's kind of like our just, just exit poll, and we won't share these, these results with the audience here. But just a question we throw, throwing out there to the audience, how much urgency do you feel to implement an automatic sales and use tax compliance solution? And you can see the choices there, kind of fun choices. I feel the pain. It's on my to-do list, but other priorities. It's on your radar, or you're already in Tax Automation Pro, which would be fabulous. But yeah, so take your time. And we just really appreciate the opportunity to present to your customers, Gabby and the Syspro team. I really appreciate our partnership. And just reach out with any questions. It's better to reach out and let's have a conversation before an auditor shows up. Great. I think that's all my slides, Gabby. Thank you. Oh, fantastic. Yeah. Well, thank you all so much for making the time to learn and listen today. Please do reach out to your Syspro partners, your account managers, and these great folks from Avalere to go through these solutions further. But for now, have a great rest of the day and rest of the week. Thank you all. Great. Thanks, everyone. Bye.