Ecommerce merchants are currently navigating a complex and confusing landscape of state-specific internet sales tax laws. A federal solution, likely the Marketplace Fairness Act, is anticipated within 2015, which will simplify compliance through standardized rules and state-funded service providers. Businesses need to prepare for these changes by understanding the current enforcement challenges and the benefits of proactive tax compliance.
Key takeaways
Understand that internet sales tax is not a matter of 'if' but 'when' it will be universally enforced; current non-collection is due to enforcement limitations, not tax exemption.
Prepare for the probable passage of a federal internet sales tax law, such as the Marketplace Fairness Act, in 2015, which will likely standardize sales tax collection nationwide.
Leverage sales tax management platforms and services, many of which are state-funded under the Streamlined Sales Tax principles, to ensure compliance without significant overhead.
Recognize that even if a federal law doesn't mandate immediate compliance, voluntarily collecting sales tax can proactively prepare your business and eliminate future compliance headaches.
Themes
business strategye-commerce taxationregulatory compliance
The rise of ecommerce has reduced local brick-and-mortar retail sales and the corresponding sales taxes from those transactions — putting states and localities in a revenue bind. A hodgepodge of efforts from the states and, now, the federal government to address the shortfall, and to tax ecommerce sales, is firmly underway. To explain the status of Internet sales taxes, and the U.S. Congressional efforts at a nationwide solution, we’re joined by Jonathan Barsade. He’s a sales tax expert, an...
Frequently asked about this episode
What does this episode say about business strategy?
Understand that internet sales tax is not a matter of 'if' but 'when' it will be universally enforced; current non-collection is due to enforcement limitations, not tax exemption.
What does this episode say about e-commerce taxation?
Prepare for the probable passage of a federal internet sales tax law, such as the Marketplace Fairness Act, in 2015, which will likely standardize sales tax collection nationwide.
What does this episode say about regulatory compliance?
Leverage sales tax management platforms and services, many of which are state-funded under the Streamlined Sales Tax principles, to ensure compliance without significant overhead.
What does this episode say about business strategy?
Recognize that even if a federal law doesn't mandate immediate compliance, voluntarily collecting sales tax can proactively prepare your business and eliminate future compliance headaches.
