- 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"
- 5 Reasons Why U.S.- and U.K.-Based Companies Should Start E-invoicing
- Excise Taxes and Fees on Wireless Services Up Again in 2025
- Maryland Imposes 3% Sales Tax on IT and Data Services Starting July 2025
- Illinois Announces Tax Amnesty Program Waiving Interest and Penalties from October to November 2025
- Tariffs Included in Taxable Sales Price for Resold Products, Clarify 24 Streamlined Sales Tax States
