Do I Need to Collect Sales Tax on Web Sales?
Question: I have online stores. Do I need to collect sales tax on web sales?
Answer: It used to be that you only had to collect sales tax in other states if you had some sort of presence or “nexus” in that state. Everything changed with the Supreme Court decision South Dakota v. Wayfair Inc. in June 2018. Once that decision takes effect over the next year or two, sales taxes will need to be collected for internet sales based on the sales tax laws of those locations. Needless to say, it is complicated.
I am advising my clients to consult with a sales tax advisor to make sure you are in compliance. There are a few such tax service companies operating now, and I expect more will be coming soon.
I am not a CPA nor a sales tax advisor, but I want you to be aware of the liability looming around the corner and seek professional advice on this issue to be sure you are in compliance. Don’t assume that things are the way they used to be.
Please email your questions to Harriet at Ask The Accountant.
QuickBooks Premier and Enterprise can be modified to better serve ad specialty distributors. Harriet Gatter is a QuickBooks ProAdvisor, a former accounting professor and a former ad specialty distributor. She advises ad specialty distributors to use QuickBooks Premier and Enterprise, often in conjunction with other industry-specific software, to manage the complexities of the ad specialty business, with the results being time saved, errors eliminated and an overall accurate accounting of your business. Contact her at firstname.lastname@example.org.