Overview: Sales tax compliance in the food and beverage industry is more complex than ever—with over 12,000 tax jurisdictions, evolving delivery models, and varying rules based on what you sell and where you sell it. In this blog, we highlight a must-watch video featuring Western Computer’s Jim Harris and Avalara’s John Johnston as they unpack the surprising risks, real-world examples, and why automation is essential. Learn how Microsoft Dynamics 365 and Avalara can help your business stay compliant, reduce manual work, and support long-term growth.
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Imagine this: you’re running a growing food and beverage company. You’ve invested in premium ingredients, your products are hitting shelves nationwide, and your team is firing on all cylinders.
Then you get audited.
Turns out, in New York, slicing a bagel makes it taxable. And that oversight? It just cost you thousands.
This isn’t a hypothetical—it’s one of the real-world examples Western Computer’s Jim Harris and Avalara’s John Johnston break down in our latest video: “Sales Tax Compliance in Food & Beverage: Why Automation is No Longer Optional.” And if your business is selling across states, channels, or through distributors, this is 20 minutes you can’t afford to skip.
From Coffee Cups to Compliance Nightmares
In the conversation, Jim and John walk through some surprisingly complex tax scenarios. A straw might be taxable in Colorado, but not the lid. Coffee might be taxable if it’s “for here” but tax-free if it’s “to-go.” A single street’s zip code can alter your sales tax liability. Multiply that by 12,000+ sales tax jurisdictions in the U.S., and you begin to see the problem.
And that problem isn’t just quirky—it’s costly. Many states allow auditors to go back up to three years, charging penalties and interest on missed filings. That’s where automation becomes a lifeline.
Automation Isn’t a Luxury—It’s a Lifesaver
At Western Computer, we’ve seen how easy it is for food and beverage companies to fall behind on compliance—especially when they’re using outdated tools like QuickBooks, or a patchwork of disconnected systems. That’s why we work with partners like Avalara and solutions like Microsoft Dynamics 365 Business Central.
Here’s the good news: when you modernize your ERP and integrate automated tax solutions like Avalara’s Avatax, your business gains:
✅ Peace of Mind – Every tax code, exemption certificate, and $0 return is handled—accurately and on time
✅ Scalability – As your operations grow, your compliance systems grow with you
✅ Real-Time Insights – Know where your liabilities are, what’s taxable, and what’s not, across jurisdictions
✅ Omnichannel Readiness – Sell through Amazon, retail, wholesale, and marketplaces without missing a beat
And best of all, this is all embedded in your existing Microsoft ecosystem—streamlining your operations while reducing risk.
How Western Computer Helps You Stay Ahead
We specialize in helping food and beverage companies modernize operations, meet complex compliance requirements, and grow with confidence. Whether you’re transitioning from legacy ERP systems or looking to simplify tax management across hundreds of SKUs and sales channels, we have the experience and industry-specific tools to get you there.
Watch the Conversation
🎥 “Sales Tax Compliance in Food & Beverage: Why Automation is No Longer Optional”
Join Jim Harris and John Johnston as they unpack the compliance pitfalls that could cost your business—and how to stay one step ahead with the right ERP and tax automation strategy.
Ready to reduce risk and reclaim time for your team?
Let’s talk about how Microsoft Dynamics 365 and Avalara can help your food & beverage business simplify compliance—and unlock growth.
Schedule a Consultation with Jim Harris »
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