It’s been about a year since the U.S. Supreme Court issued its landmark decision in South Dakota v. Wayfair that said states could charge tax on purchases made from out-of-state sellers, even if the seller does not have a physical presence in the state.
While it may be too early to fully understand the decision’s implications, the ruling has been very good for business for vendors and consultants. “Things are great from our perspective,” says David Campbell, CEO and co-founder of TaxCloud, a sales tax compliance service. “Complexity is good for business.” After all, retailers need help navigating the various tax laws, which is where TaxCloud and its competitors fit in.
As for retailers, the picture is a little more complicated. From a high-level perspective, the decision has evened the playing field by removing out-of-state sellers’ advantage in that they didn’t have to collect sales tax, says Andy Majewski, controller at outdoor gear retailer Filson.
But it’s also created a lot of complications. There are roughly 12,000 tax jurisdictions throughout the United States and ensuring that you’re in compliance in each of them isn’t easy—especially with states regularly making changes to their laws and regulations. For instance, California…
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