The Downstream Effect of South Dakota vs. Wayfair
The recent ruling of the South Dakota vs. Wayfair case set what many are calling a landmark court decision regarding out-of-state commerce. The previous and longstanding “law of the land,” as many tax experts refer to it, has now been shifted to depict a new regulation of economic nexus. Nexus is defined as an obligation for an organization conducting business out-of-state to collect and remit sales tax.
This Supreme Court decision ruled in favor of South Dakota, establishing that states could now tax purchases made from out-of-state sellers, even if the seller does not have a physical presence in the state. With this new ruling overturning the previous regulation established in 1992, how does this change the game for retailers? Further, with new technology and avenues of e-commerce continuously emerging, how will companies be able to keep up with new regulations?
Live from Denver, Colorado at the JD Edwards Infocus Conference, host Patrick Pahls sits down with Avalara Strategic Alliance Manager, Paul Turec to discuss how retailers can adapt to this newly established economic nexus regulation.
Listen to “The Landmark Case for Economic Nexus”:
The previous Supreme Court ruling of Quill Corp. v. North Dakota in 1992, previously set the stage for tax regulations in the emerging world of e-commerce. This case set the 26 year regulation in the prevention of sales tax collecting from any retailer not having a physical presence in the taxing state. With a dynamic new sales environment emerging in light of the new ruling, how can companies be sure they are properly collecting sales tax?
“If you are an enterprise level customer doing business across the United States, it is imperative that you understand your tax obligations. A solution like Avalara can help provide that counsel”.
-Paul Turec, Avalara Strategic Alliance Manager
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