COVID-19 has significantly disrupted the global economy, with e-commerce sales expected to reach more than USD 6.5 trillion by 2023. That’s more than double the USD 3.5 trillion spend from 2019. Given the continued growth of online sales, along with novel ways of trading via the internet, tax authorities in the U.S. and across the globe are striving to ensure e-commerce is appropriately taxed in their jurisdictions. One tax strategy authorities have implemented is to impose sales/use tax and Value Added Tax (VAT) on online sales by deeming remote/non-resident vendors as having nexus in their certain jurisdictions. When selling online to customers within the U.S. and internationally, there are several sales/use tax and VAT issues e-commerce businesses should consider.
Source: BDO
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