- The Wayfair decision changed the previous Supreme Court precedent by establishing that marketplace facilitators can be obligated to collect and remit sales tax based on economic nexus, without physical presence in a state.
- This has led to a patchwork of diverse laws among states, causing increased compliance costs and inefficiencies for marketplace facilitators.
- To address these issues, states should pursue legal
- uniformity by centralizing sales tax administration, limiting thresholds for tax collection, and excluding business-to-business sales to avoid tax pyramiding. Additionally, states should not impose separate fees or registration requirements and allow marketplace facilitators and sellers to freely contract responsibility for tax collection.
- Finally, states should carefully consider the taxation of digital products to avoid overly broad application of sales taxes
Source Tax Foundation
Join the Linkedin Group on VAT/GST and E-Commerce HERE
Latest Posts in "United States"
- U.S. Court of International Trade orders liquidation and reliquidation of certain entries without IEEPA duties
- US Sales Tax Holidays 2026: Dates, States, and Eligible Purchases Explained
- Sales Tax Vendor Discounts by State: Save Money for Early or On-Time Payments
- US Sales Tax Compliance: Essential Guide for Marketplace Facilitators and Remote Sellers
- After US Supreme Court Ruling: New Tariffs, Exemptions, and US-EU Trade Reactions
