Download the White Paper to Discover How New Sales Taxability Laws Impact Your Business
You’ve probably received a strange email lately: “This email is to inform you that your state now requires us to charge sales tax,” it says (or at least that’s the gist of it), “so expect your statements to change soon.”
Considering the recent upheavals in sales taxability legislation in many U.S. states, it’s not surprising that your favorite online retailers are having to update their processes (and are emailing you about it).
However, what may surprise you is that it’s highly likely your business should be updating its sales tax processes too.
Discover how sales taxes and tax exemption management are impacting your organization right now. Get the white paper brought to you by PeopleSense and Avalara to learn more about the latest sales taxability laws and updates — and what you should do about them.
Why Is Sales Tax Legislation Changing Now?
In the past, sales taxability in a state typically required a company to have a physical presence in the state. This was known as “physical presence nexus.”
Though some states had tried to create laws that demanded sales taxes from businesses without physical presence nexus, these laws were unenforceable. In short, it was very unlikely your business would have to pay sales taxes to a state you weren’t located in.
In 2018, all that changed.
The landmark Supreme Court case, “South Dakota v. Wayfair, Inc.,” set a precedent allowing states to collect sales tax on companies that didn’t have physical presence nexus in their state. This new ruling established “economic nexus” laws, which determined taxability based on economic thresholds, such as revenue amounts or numbers of transactions in a single state.
South Dakota may have been the first state to enforce economic nexus legislation, but it wasn’t the last. By this point, economic nexus laws are the new standard in the world of sales taxability — and that means your company is probably responsible for reporting and filing sales tax and sales tax exemption certificates in many more states, starting now.
You may already be using Avalara to handle your sales tax needs for Made2Manage® (M2M®) or Intuitive ERP®, which means you’ll be able to easily handle sales tax reporting in multiple states. However, tax exemption management is where economic nexus laws get especially difficult, especially for suppliers.
Get the Facts on Sales Tax Exemption Management after South Dakota v. Wayfair, Inc.
- An easy-to-read, state-by-state chart that shows you which states include exempt sales and/or services in their economic nexus thresholds
- A useful flowchart that helps you understand how drop shipping impacts tax exemption for suppliers
- 3 questions that help you determine your non-compliance risk, along with next steps you can use to maintain compliance
Big changes in sales taxability can mean big consequences for your company, but only if you make a mistake. PeopleSense and Avalara are here to help you stay on top of your sales tax and exemption certificate responsibilities, so you can stay confident in 2019 and beyond.
Get the white paper, “Managing Exempt Sales During the Rise of Economic Nexus,” so you know how to keep your exemption certificates in order for the new tax laws.