Terry Barrett, tax senior manager and leader in Keiter's State and Local Tax team, shared her insights on the Supreme Court's ruling affecting online sales tax collections with Inc. in the article, ”A Supreme Court Ruling on Internet Sales Tax Is 'Absolutely Hair Raising' for Small Businesses.” This includes a look at the impact the Wayfair v. South Dakota decision had on both large and small businesses with multistate operations and what these businesses should take into consideration in light of these sales tax changes.
Of course, plenty of small businesses–brick-and-mortar shops in particular–cheered the decision, which they say levels the playing field for all businesses that sell goods, whether online or off. With it, the High Court moved to overturn a 1992 ruling–Quill v. North Dakota, in which many small businesses gained a competitive advantage–holding that any seller must have a physical presence in a state in order to be required to collect and remit tax. In other words, if your company didn't have a physical presence in Ohio, you could avoid charging taxes on your Ohio sales.
“This is definitely the right answer given the times, and the way the retail market has shifted towards internet sales,” notes Terry Barrett, a senior tax manager with advisory Keiter Accounting in Glen Allen, Virginia. She works with both brick-and-mortar and e-commerce small businesses nationwide.
Source: Inc. Magazine
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