If you're responsible for keeping your company compliant with its sales tax obligations, then you’re probably already exhausted as the new year starts. In 2017, we saw tens of thousands of sales tax changes (36,254, changes to be precise) occur across all the states in the nation. But that may just have been a precursor for what’s coming in 2018. Depending on what you sell and where you sell it, your organization may continue to see - and have to respond to - more big sales tax changes this year.
Fortunately, we have a free whitepaper available from the tax experts at Avalara to give you a head start preparing. Even if you don’t have a presence in those states making the biggest shifts in tax legislation, just selling to consumers in those places might have implications that you need to know about sooner than later. Here is just a taste of what this free report uncovers.
States Tax Marketplace Sales
Increasingly, states are looking for revenue from those sellers associated with big conglomerates like Amazon. Amazon has historically collected tax as required by states for sales of its own products, but it hasn’t done so for its marketplace partners. That may change in 2018, as state legislatures push through laws requiring such marketplace facilitators to either collect tax or comply with complex reporting requirements. Amazon is already doing so in Washington, and other facilitators in other states may soon be required to follow suit. This trend will necessarily change the way marketplace vendors operate.
The Rise of Consumers’ Use Tax
Similarly, a growing number of states are demanding that retailers disclose consumer information to facilitate enforcement of use tax compliance. On their own, states can’t know which consumers are paying use tax. So they are using the power of their legislatures to force vendors to provide the information required to perform those granular, consumer-level audits. Colorado was the first state to recruit non-collecting retailers in this effort. Since that action was upheld in a 2016 court case, more states are soon likely to get in on the potential revenue stream.
Taxing Out-of-State Sellers
States have been inching forward in the courts towards doing away with current law that requires vendors to have a physical presence in a state in order to be subject to sales tax law. If those changes continue in the same direction, 2018 could very well see nexus expand and remote sellers with no brick and mortar become subject to state sales tax laws.
These are just a few of the items covered by the free report, available for download below.
It may provide some hints…and it may provide an idea about how
tax automation can help relieve the worry and avoid unpleasant surprises.
What will 2018 hold for your business with regard to sales taxation?