How Does Wayfair Impact Companies?

February 21, 2020

Selling over the internet means you need to know the concept of Nexus.

Transcript

Gary Bingel:So there are many ways that this new decision impacts companies. The first and most obvious is that most companies are going to have a greatly expanded nexus footprint for sales tax as well as for other taxes potentially. They're going to face increased costs, especially in the tax department as far as having to implement new IT systems, more administrative costs as far as increased tax filings, as well as everything that goes along with that such as increased audits, increase notices, more time spent updating rates packages and their invoicing system, things like that.

It's also important to remember that just like companies are struggling, states are still struggling as well with how they're going to implement the Wayfair decision and their economic Nexus provisions. They've been flooded with new registrations as well as trying to struggle with how they're going to interpret a lot of the nuances of economic Nexus and their thresholds. For instance, what is defined as a separate transaction? Is it a monthly recurring charge for a subscription or is it just the one time contract if it's an annual fee. Things such as that still have yet to be resolved in many cases.

About Gary Bingel

Gary Bingel's expertise focuses on state and local income taxation, and sales and use tax consulting. He has significant experience serving clients in the manufacturing, retail, pharmaceutical, biotechnology, technology and service industries.

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