09 July 2018 US sales and use tax ramifications for Canadian e-commerce vendors discussed following US Supreme Court judgment The United States Supreme Court issued its ruling in South Dakota v. Wayfair on June 21, and in a 5-4 decision, overturned the physical presence nexus standard for sales and use tax collection. As a result, e-commerce vendors may be required to collect and remit South Dakota sales tax for sales made to South Dakota consumers, even where such vendors do not have any offices, warehouses or employees in the state. Compliance costs for Canadian online vendors could increase substantially if other states decide to enforce sales tax legislation similar to that of South Dakota. States may also seek to impose retroactive assessments. Document ID: 2018-1356 |
