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New Report Proves “Free” Internet Sales Tax Software Is Still Going to Cost Businesses

As the issue of Internet sales tax heats up in Congress, there has been much speculation about the costs that online and catalog retailers will face in integrating so-called “free” software under the Marketplace Fairness Act.

The notion that free software, from providers like Avalara and others, will keep costs low for businesses is untrue and ignores the significant costs of integrating and running “free” software.

For example, the most conservative research findings put these costs at $80,000 to $290,000 in setup and integration fees.

For example, the most conservative research findings put these costs at $80,000 to $290,000 in setup and integration fees.

As I told the Senate Commerce Committee last year, this software is “free like a found puppy,” and brings a lifetime of costs and painful adjustments.

The True Simplification of Taxation (TruST) coalition just released a study that examines these software integration costs and breaks down other burdens that businesses will face in order to comply with MFA.

For example, the most conservative research findings put these costs at $80,000 to $290,000 in setup and integration fees.

Read the full report here: TruST Cost of Software Integration Study.

[gview file=”http://truesimplification.org/wp-content/uploads/Final_Embargoed-TruST-COI-Paper-.pdf” save=”1″]