The US Supreme Court is finally going to hear a court case regarding sales tax and online sellers. Whether you are brand new to selling products online or you’ve an old veteran, the decision could change everything.
Oh, and by the way, don’t just tune out this article if all you do is sell digital products. There are now 27 states that require you to collect and pay sales tax on digital product sales.
For a long time, businesses have relied on the 1992 Quill decision in determining whether states can require sales tax to be collected. That case prohibited states from imposing sales and use tax collection obligations on sellers unless they had an in-state physical presence.
The Court will hear this sales tax collection case on April 17th and are expected to deliver a decision by late June.
Stay tuned! You may soon find that you are responsible for collecting sales tax on ALL sales. What a paperwork nightmare!
In tomorrow’s blog, we’ll look at the states that require sales tax collection on digital products. This is the blog you’ll want to save. If the Wayfair case (April 17th US Supreme Court case) rules that states have the right to require sales tax collection, you will be responsible for following the sales tax rules in each individual state and jurisdiction if you make sales to people in that area.
Might as well start with digital products!