CONTACT US

How Many States Does Wayfair Apply To? When Does it Kick In?

Wayfair2.jpg

Currently approximately 30 states will adhere to Wayfair in some way.  While some states enacted specific nexus statutes, others felt their current provisions were broad enough to include wayfair’s economic nexus thresholds, and thus merely issued administrative guidance.  We believe all states will adhere to wayfair in some way within the next 6-12 months.  Most states are enforcing economic nexus for sales taxes starting in late 2018 or early 2019.


Transcript

Tim Schuster:How many states does this apply to and when, approximately, is this going to kick in?

 


Have Questions or Comments?

If you have any questions about this media item, we'd like to hear your opinion. Please share your thoughts with us.

Contact EisnerAmper

* Required


More Videos in This Series
What Are Some of the Consequences of Wayfair?

As a result of the Wayfair decision, states will be emboldened to enforce economic nexus not just in sales tax, but income tax and net worth taxes as well, and companies should prepare for additional audit activity and investment in their IT systems.


What Should My Business be Doing in Light of Wayfair?

Businesses need to determine how Wayfair may apply to them by evaluating their nexus footprint, as well as where they should be filing based on any threshold (dollar threshold or transaction threshold) that is met.


What Types of Businesses does Wayfair Apply To?

While many view Wayfair as applying only to internet retailers, Wayfair extends beyond e-commerce to service companies and software companies with nexus in more than one jurisdiction, increasing record keeping and exemption certificates.


What Does Wayfair Mean to Businesses in General?

According to Wayfair, since a nexus footprint can now be established through economic contacts alone, businesses need to evaluate their nexus footprint in each state and evaluate their tax filing requirements and audit requirements.


What is the Wayfair Decision?

The wayfair decision is the recent US Supreme Court decision out of South Dakota which overturned the physical presence requirement of Quill, and held that physical presence is not required to create nexus for sales tax purposes.


What was the Quill Decision?

The Quill decision was the 1992 US Supreme Court decision out of North Dakota which held that some type of physical presence was required in order to create nexus with a state for sales tax purposes.