Prior to June 21st, in order to be held liable for collecting and remitting sales and use tax, the business had to have a physical presence in the state. The Wayfair Decision overturned the physical presence requirement. Many states can now require businesses to charge and remit sales and use taxes based on an economic presence (nexus) within their state.
Each state can create their own definition of economic nexus, which can include dollar value of sales per year and/or volume of sales transactions per year with customers located in that state. Some states have defined their economic nexus and are implementing this change over the next few months, while some states have done nothing…yet.
You are receiving this notification because the Wayfair Decision might have a great impact on how you are required to transact business in certain states. Businesses that fail to comply with the new economic nexus standards might be held liable for the sales and use tax they should have collected, plus interest and penalties.
Due to the complexity of this recent law change and changes to how the varying states will enforce this law, we would recommend having a sales and use tax nexus study performed. This would include analyzing your sales by state (dollar volume and number of transactions) to determine sales and use tax applicability to your business and whether you meet the requirement to collect sales and use tax in the states where your business is conducted.
Our “Wayfair” experts are:
Robert Freed – firstname.lastname@example.org,
Debi Koch – email@example.com
Jenni Rybicki – firstname.lastname@example.org
Please feel free to contact one of them directly, or call the office, if you have any questions or you are interested in having a nexus study performed.
We are Right, By Your Side and ready to assist you with analyzing your sales to ensure you are compliant with the new economic nexus definitions.