We are more than a year removed from the Wayfair vs South Dakota ruling by the Supreme Court of the United States and over 35 states have laws on the books for remote sales and use taxes. This offers a host of complex challenges for companies, especially ones with online transactions. Commonly regarded as the “internet sales tax,” this ruling overturned a law that enabled states to impose sales taxes on a company ONLY if that company had a physical presence in the state. Online retailers and other companies doing business online benefited greatly from this physical presence requirement, but that chapter in history is closed.
In simplistic terms, the Wayfair vs South Dakota ruling allows states to tax companies based on an economic nexus (i.e., economic activity), regardless of a company’s physical presence. The Wayfairs, Overstock.coms and Neweggs of the world, along with smaller companies selling products or services online, are experiencing a paradigm shift in real-time. How is your company handling these new requirements?
In this blog post, we will quickly review three of the more significant challenges associated with the internet tax and why NetSuite customers should consider a cost and time-saving integration to ease the adjustment process.