Wayfair cc check status1/7/2024 ![]() States must ensure that their definition of facilitators is not excessively broad, capturing service providers with no reasonable way of collecting the tax or resulting in double taxation, and should offer sellers and facilitators a way to contractually agree for the seller to retain collection responsibility where they are better situated to do so.Most states have adopted marketplace facilitator laws which shift tax collection obligations from sellers in a marketplace to the company facilitating the sale.Prior to Wayfair’s endorsement of an economic presence standard, states found creative, if sometimes dubious, ways to expand the definition of physical presence, like click-through or cookie nexus, or notice and reporting requirements for remote sellers now that states have a more straightforward way to impose sales tax obligations, they should repeal these subjectively-enforced vestiges of the prior regime.States should provide free software and lookup tools that can be used directly or integrated with vendor solutions to enable sellers to determine the appropriate jurisdiction and applicable rate for each remote sale.Simplified Seller Use Taxes, like those adopted in Alabama and Louisiana, try to address one constitutional concern (undue burden) by substituting another (discriminatory taxation), in some cases imposing higher rates on remote sellers than are faced by in-state merchants.Unity and uniformity are vital for a sound, constitutionally valid remote sales tax regime while local sales taxes are entirely consistent with Wayfair, all jurisdictions in a state should use the same sales tax base, with a single point of administration.Safe harbors for small sellers help avoid imposing constitutionally suspect undue burdens on remote sellers they should take the size of the state’s economy into consideration, be denominated in gross sales (not transactions), be calculated under the state’s own tax base, and be designed to avoid “notch effects” where exceeding the safe harbor imposes a retroactive obligation on prior transactions. ![]() ![]() Supreme Court decision eliminating the physical presence standard for sales tax nexus, 43 of 45 states with statewide sales taxes have adopted collection and remittance obligations for remote sellers, and 38 have implemented marketplace facilitator regimes.
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