Do I receive any liability relief if I contract with a Certified Service Provider and the provider calculates the incorrect sales tax amount?
Answer: Depending on the reason for the error you may receive liability relief.
You will receive liability relief when the CSP calculates the incorrect tax due to an error on the State’s current rate or boundary file if the CSP relied on that data to determine the tax rate.
You will receive liability relief when the CSP relies on the information the state provides in the Library Section of its Taxability Matrix to determine if the product sold is taxable.
To the extent the state laws allow, the state will also provide liability relief for use of incorrect information the state provided in the Administration Practices section of the Taxability Matrix.
To the extent the state law allows, the state will provide liability relief for a CSP relying on the state’s certification of the CSP’s taxability rules.
You will not receive liability relief if you or the CSP incorrectly classifies your product into an incorrect product category or to an incorrect tax rule. When you integrate your system with the CSP’s tax rules the CSP will need to identify which of your products fall under which tax rules. This is referred to as “Mapping.” The CSP is responsible for any errors in mapping products and may require reimbursement from the seller.