18 months after the Wayfair decision, all but 2 states have enacted economic nexus rules

On 21 June 2018, the U.S. Supreme Court issued its decision in South Dakota v. Wayfair. In a 5-4 decision, the Court upheld South Dakota’s application of an economic presence rule for state sales/use tax jurisdiction (or nexus) purposes. Prior to the Court’s decision, a state’s jurisdiction to tax was traditionally limited to those vendors with an in-state physical presence. The Court’s decision in Wayfair allows the states to subject U.S. and non-U.S. remote vendors to a sales/use tax compliance obligation.

Source: BDO

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