The Supreme Court ruled in favor of South Dakota. The ruling grants South Dakota the authority to charge sales tax on out-of-state transactions, which includes online retailers such as Wayfair.
What does this mean for you?
If you’re a remote or online seller, it means you need to pay extra attention to your tax obligations. Taxes will no longer be bound by physical nexus, but by economic nexus.
After South Dakota started collecting sales tax from out of state sellers, a handful of states decided to follow in their footsteps. These states will also be bound by economic nexus. Keeping track could be very time-consuming unless you get a product to help you keep track of nexus and tax rates. Our partner, Avalara, can handle that for you. Avalara can help you instantly calculate exactly how much tax must be charged on your transactions, so you don't have to worry about staying compliant.
Contact Sheri Blaho if you're looking for a partner and a product to assist you with compliance after the Supreme Court lifted the physical presence rule on sales tax.