Reverse Audits: Uncovering Sales Tax Overpayments

Accounts payable is typically responsible for making taxability decisions. However, whether due to lack of expertise or lack of time, many departments routinely overpay sales tax on invoices. Many exemptions to go untaken, reports David Olivier, founder and managing principal of sales and use tax consulting firm Olivier & Associates. 

Tax departments typically create a taxability matrix for AP to follow that indicates which goods and services should be taxed. Unfortunately, pa…