Within the dynamic e-commerce landscape, service providers leverage technology solutions to streamline their operations. Among these tools, Application Programming Interfaces (APIs) have emerged as the go-to solution to transfer data from your store to the solution provider's internal systems. Despite the speed and efficiency that APIs give the service provider, they frequently overstate sales tax figures.

1. Edited Orders Lost in Translation

APIs often fall short of adequately transferring data in edited orders. When orders are modified to change the line items or make adjustments or corrections, API connections frequently fail to transfer the final data. This results in discrepancies in sales tax calculations.

2. Vanishing Discounts

Discounts play a pivotal role in the final sales tax amount. However, APIs may not consistently capture and display discounts, leading to a distorted representation of the actual taxable value. The consequences? Overpayment in sales tax due to inaccurate calculations.

3. The Refund Conundrum

Refunded orders often go unnoticed by APIs, leaving gaps in the sales data. Businesses will remit taxes on reversed transactions without a human eye to spot and rectify these omissions.

4. The Exemption Oversight

Exempt items, services, holidays, and customers are all potential pitfalls when solely relying on APIs. Automated systems struggle to discern these nuances, often resulting in miscalculated tax amounts. A human touch is essential to ensure accuracy and compliance.

5. Errors Amplified

APIs are not infallible; errors can occur during data retrieval. The result is duplicated data entries that inflate sales numbers and tax liabilities. A vigilant human review is paramount to catch and correct these discrepancies. 

Why APIs Alone Fall Short

APIs are a valuable tool, but they lack the discernment and adaptability that human oversight brings to sales tax management. The complexities of tax regulations demand a nuanced understanding that automated systems struggle to achieve.

The Piper Approach: Blending Technology with Human Expertise

At Piper, we understand the limitations of relying solely on APIs for sales tax management. Our approach combines cutting-edge technology with the critical element of human expertise. By having seasoned professionals review your data, we ensure accuracy, catch discrepancies, and safeguard you from overstating sales tax.

Piper has been instrumental in uncovering and recovering overpaid sales taxes resulting from API errors for many clients. One valued customer reclaimed nearly $2 million in overpaid taxes, thanks to the expertise of Piper's sales tax professionals. Most merchants utilizing API services are often unaware they've even overpaid their sales tax.

Piper will ensure your sales tax is never overpaid. And if you haven't been using Piper, we can audit your records to cost-effectively identify and retrieve overpaid taxes.