Have you reviewed your Sales Tax requirements since the Wayfair decision

Are you managing the changing landscape of sales tax based on the Wayfair Case? On June 21, 2018 the U.S. Supreme Court issued its decision regarding South Dakota v Wayfair. The court ruled that the physical presence rule (Quill v North Dakota) that had been followed for Nexus was no longer a sound ruling based on the increase in internet sales. They overturned the earlier physical presence ruling in favor of South Dakota. This now means physical presence is no longer the trigger regarding a tax obligation. 

In order to not over-burden small businesses most states with a sales tax have created thresholds that would only capture those businesses that do a substantial amount of business within the state. In South Dakota the threshold is set at $100,000 in sales or exceeding 200 transactions per year. Each state has created their own threshold.

If you have any significant internet sales into a state you will want to make sure you know their thresholds and watch to capture when you have exceeded that threshold and need to start reporting tax. In some states there is only a monetary threshold but others are similar to South Dakota in that they have a monetary or transaction-based threshold and if either is met you have a requirement to pay tax.

There are businesses out there to help those that are burdened with this new ruling such as Avalara. I would expect to see many more systems created to help alleviate some of this reporting burden in the near future.