Four years on: Wayfair’s impact on UK cross-border trading and what’s still to come

It’s been more than four years since the US Supreme Court’s decision (South Dakota v. Wayfair), allowed states to tax remote sales — those made by businesses with no physical presence in the state.

Historically speaking, states have only been able to impose tax on businesses which meet a certain level of physical presence in-state. Following the Wayfair ruling in the Supreme Court, this is no longer the case. For international sellers that ship products to the US, it’s important to understand the sales tax registration and remittance requirement they may now have due to economic nexus rules.

UK businesses are now having to wrap their heads around these new requirements and seek tax advice as to each state’s specific threshold.

Source ecommerceage.co.uk

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