Are Your Holiday Season Profits at Risk?
The holiday season heralds $1 trillion in sales, but the South Dakota v. Wayfair decision could mean a hefty holiday tax bill for online brands.
The Wayfair decision overturned decades of precedent, determining that states may require retailers to collect and remit sales tax even if the retailer lacks a physical presence in the state.
Online retailers need an in-depth understanding of how they will be taxed in each state where they sell—and employ a tracking system if it doesn’t already exist—so they can appropriately tax customers and comply with all state tax regulations and deadlines.
There’s no workaround for compliance. The potential burden of compliance across thousands of tax jurisdictions with varying nexus standards, requirements and deadlines could offset gains this holiday season.
ARE YOUR HOLIDAY SEASON PROFITS AT RISK? ANSWER SIX QUESTIONS TO FIND OUT.
CONTACT US
Contact us to minimize potential tax liabilities and non-compliance penalties now, and to plan around fluid state changes that could impact you in the future.
WHERE ARE YOUR CUSTOMERS?
Several states have recently enacted economic nexus statutes for sales and use taxes similar to South Dakota. View the thresholds, legal effective dates, and administrative enforcement dates by state in our interactive map.
At BDO, our experienced professionals are dedicated to helping our e-commerce clients navigate evolving tax issues. Stay tuned for six steps you need to take to address state sales and use tax compliance.
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