22 January 2019 Implications of the Wayfair ruling for non-US multinational companies The U.S. Supreme Court issued its much-anticipated ruling in South Dakota v. Wayfair on June 21, 2018, addressing the question of what constitutes nexus for US state and local sales and use tax purposes. The ruling is likely to significantly impact companies outside of the US that sell goods or provide services directly to US customers (or via their US distributors). These businesses may be required to register for, collect and remit sales tax in US states, depending on how each individual state responds to the Court’s ruling in Wayfair. During a round-table discussion, attached below, EY professionals provided an overview of who is impacted by this decision and discussed some of the US tax basics as they relate to sales and use tax when compared with a value-added tax (VAT). They also covered the issue of nexus, both before and after Wayfair, and what that might mean to businesses, what they think the individual states may do, plus any additional implications. Document ID: 2019-0196 |
