Changes in Sales Tax Law: New Requirements for Businesses

In 2018, a Supreme Court ruling in the case of South Dakota v. Wayfair opened the door for states to implement a sales tax law on remote sellers based on the sales amount even if the seller is not physically present in the state. Many companies with multistate sales are only now learning about their tax obligations under new state laws that have been enacted since the Supreme Court ruling. To avoid penalties and additional tax liability, companies with multistate sales must understand their exposure to economic nexus through remote sales and take steps to comply with their reporting and tax obligations.

Generally, there are three main categories for sales taxation: the basic, physical nexus, the affiliate nexus, and the click-through nexus.

How can businesses be prepared and proactive on their sales taxation and remain aware of ways to save money in this new environment?

On today’s episode of On the Shop Floor, a Weaver podcast, hosts Colby Horn, Partner, Assurance Services and Jody Allred, Partner-in-Charge are joined by Blake Fuqua, Partner, State and Local Tax Services for Weaver to talk about sales tax law changes since 2018 and how these changes will impact businesses.

Horn, Allred, and Fuqua covered these topics:

1. Key issues in sales tax requirements and changes since 2018

2. Digital sales tax rules for e-commerce

3. Savings opportunities for manufacturing businesses

Fuqua stated, “Organizations need to be proactive rather than reactive and waiting until they get audited. A lot of the time, that’s when I get called in and it’s an uphill battle at that point if we don’t have the certificates or you haven’t been filing, it puts companies in a tough spot.”

Blake Fuqua has nearly 15 years of indirect tax experience and sales tax consulting in a variety of industries, including manufacturing, energy, retail, and construction. Prior to joining Weaver, Fuqua served as Manager of Multistate Tax Services, Sales and Use Tax at Deloitte, Sales Tax Analyst at 7-Eleven, and Sales and Use Tax Consultant at Ryan.