On Thursday June 21st, the US Supreme Court ruled in favor of the state of South Dakota vs. Quill Corporation that states have the right to collect taxes on internet sales regardless of whether or not you have a physical presence in the state. This means that as an ecommerce company selling through your website, you are now responsible for collecting the bewildering array of taxes levied at the city, county, and state level everywhere in the United States. And you thought the GDPR privacy issues in the European Union were a mess! This ruling is going to be a game changer, and is a serious concern, especially for small businesses selling online.
The case allowed that South Dakota has the right to collect sales tax on retailers with more than $100,000 in sales or 200 transactions. That is a pretty small amount, meaning that almost anyone selling online is required to collect and report sales tax regardless of where they are located. We’ve probably all been expecting this for some time, as physical retailers have complained about an unlevel playing field as they’ve lost sales to online etailers, but that doesn’t change the impact for small businesses who now have to comply with individual laws in the 45 states that collect sales taxes.
Is this really effective immediately? According to an article USA Today, it will […]