Are You in Compliance With Wayfair? 

The South Dakota v. Wayfair Supreme Court decision held that states may require businesses to collect and remit sales tax even if the business has no in-state physical presence. Wayfair changed a remote seller’s considerations from “do I have physical presence” to “how do I comply with all the state and local jurisdictions where my products or services are delivered?”
 
The decision has broad impacts on states, e-commerce sellers, digital service providers, consumers, and buyers and sellers of businesses. Companies must understand how their products and services are taxed in all the states in which they are sold and create a system that tracks this activity. Now may be the time to consider sales tax automation software to help ensure compliance with state and local laws, and to more efficiently report and remit taxes. 
 

Economic Nexus Standards by State

Most states have enacted sales/use tax economic nexus statutes. Click on a state below to see the thresholds and enforcement dates. Use the toggle feature above the map to switch between remote seller rules and marketplace facilitator rules.

 
This information is current as of June 30, 2021.​ Material discussed is meant to provide general information and should not be acted on without professional advice tailored to your needs.

   

Wayfair Risk Assessment

If you’re unsure how Wayfair affects your business, read through our risk assessment and if your response to any of the questions is “yes,” BDO can help.  
 

• Do you make sales into states in which you are not registered for filing sales/use tax returns or income/franchise tax returns?
• Do you ship goods or provide services to customers located in states where you have little or no in-state physical presence?
• Do you make retail sales of tangible goods?
• Do you provide online services or make sales of digital goods?
• Have you received a "nexus questionnaire" or received audit or tax notices from any state where you are not currently registered for sales/use taxes?
• Are you a private equity company involved in extensive M&A?
• Do you have foreign businesses that sell into the United States?

 

Left unchecked, state and local tax obligations, and the corresponding potential liability from tax, interest and penalties, will grow over time. Learn about the six steps to state sales/use tax compliance.