How economic nexus has changed the game
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Remember when the Supreme Court ruled on the?Wayfair?decision and opened the door to widespread online sales tax obligations across the US? (We actually?wrote about it?at the time.)
Well the legendary accounting firm PricewaterhouseCoopers just released?a report detailing the effects of?Wayfair, five years on. TLDR: US sales tax is still messy.
Here are five of the several outcomes that PwC describe:
- Widespread adoption of?economic nexus laws
- Lack of uniformity in thresholds, definitions and liabilities
- Implementation of?marketplace facilitator laws
- Expansion in tax filing footprint (i.e. businesses filing in many more locations)
- Overpayments of sales tax!
To minimize cases of non-compliance and overpaying sales tax, PwC recommends that businesses use “tax engines to maintain data on taxability, rates, and calculations.†Of course, as a tax engine ourselves, we were thrilled to read this bit! If you’re curious, learn?how Quaderno automates the tax compliance process?for online businesses.
领英推è
Still don't fully understand what economic nexus is? We've broken it down for you in this quick?video.
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???What is a zero-rated supply?
Zero-rated supplies are goods and services that hold a very niche spot in the tax system. It’s especially important for remote sellers to understand the definition! Learn about the difference between zero-rated and tax exempt, and which products fall under this category in most VAT and GST jurisdictions.
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