April 14, 2025
Compliance Risks Are Rising
With 2025 well underway, businesses face a growing wave of tax and trade challenges. In our recent webinar, hosted by Guide Technologies in partnership with Avalara, tax experts Mary Cho , Rob Hebrank, and Jesse Lewter shared practical steps manufacturers and other companies should take now to prepare for these changes.
The manufacturing sector alone is booming, with the global smart manufacturing market expected to reach $1.2 trillion by 2033, but rapid growth also means heightened risk. More than 40 states now count exempt sales toward economic nexus thresholds — meaning you might owe taxes even if your products aren’t taxable.
Each speaker brought real-world experience and actionable advice to help businesses plan ahead for the remainder of 2025 and beyond.
Know Your Nexus
A key theme throughout the webinar was the urgent need for businesses to monitor both physical and economic nexus thresholds carefully. Nexus can be triggered by employees, inventory storage, ecommerce sales, affiliate marketing relationships, and more.
As Mary Cho emphasized, “Nexus and taxability are two different things. You may owe tax filings even if your sales are exempt — it’s all about where you have a presence, not just what you sell.”
Businesses that proactively assess their exposure can take advantage of voluntary disclosure programs (VDPs), reducing penalties and avoiding costly audits before state authorities initiate contact.
Nexus and taxability are two different things. You may owe tax filings even if your sales are exempt — it’s all about where you have a presence, not just what you sell.
Watch for Audit Triggers
States are becoming increasingly aggressive in identifying noncompliant businesses. Audit triggers can include everything from trade show participation to remote employees to basic visibility through websites and social media.
The advice was clear: never ignore notices. Quick responses, clear documentation, and maintaining positive communication with auditors can significantly limit risk during an audit.
Get Tariffs Right
On the global front, managing tariffs is more complex than ever. Proper classification of goods with harmonized tariff codes (HTCs) and accurate landed costs are crucial for avoiding customs delays and unexpected fees. Avalara’s cross-border solutions help businesses stay ahead of tariff changes and duty rate updates.
Automate Your Compliance
The best way to stay compliant and reduce manual errors? Automate wherever possible. Avalara’s solutions integrate with over 1,200 ERP, e-commerce, and CRM systems, making tax calculations, exemption certificates, return filing, and international duty tracking easier than ever. For businesses without in-house resources, Avalara offers implementation support through its network of certified partners.
Stay Ahead in 2025
In today’s business environment, compliance isn’t just a requirement. It’s a competitive advantage. Companies that proactively manage risk, automate processes, and stay informed about tax and trade changes will be set up for success in 2025 and beyond.
Want to dive deeper?
Watch the full webinar recording or connect with Guide Technologies about safeguarding your business.
Keep up to date on the latest global trade issues and the potential impacts to your business. Register for Avalara’s weekly webinar series, Trade and Tariff Tuesdays.
