In June 2018 the US supreme court upheld a lower court’s ruling that the state of South Dakota could force the online retailer Wayfair, a retailer with no nexus (physical location) in the state to collect sales taxes. This ruling sent shockwaves through the eCommerce community. Therefore, online retailers may now be required to collect sales tax on goods they ship.
This week’s top stories focus on new sales tax collection requirements for e-commerce businesses, The following small business advice covers the following four topics:
- Colorado adopts South Dakota-style economic nexus starting December 2018
- Colorado Department of Revenue - What's Changing?
- Supreme Court’s Wayfair Decision Will Hurt Online Shopping
- South Dakota v. Wayfair – What Does It Mean for Your Small Business
When a seller of a product makes a sale to an end user of a product, the seller is responsible for collecting sales taxes on behalf of several taxing jurisdictions. Leanr how sales taxes and use taxes work together and what taxes the seller is responsible for collecting.
I often encounter businesses that at their core are pure services businesses, but which also sell products as part of their offerings. For example, consider a small part-time mobile oil change business. They are primarily in the service business of changing a person’s oil. However, their service includes the sale of motor oil. I’m often […]
Many new entrepreneurs are confused when it comes to sales taxes. A sales tax license gives you the authorization to act as an agent for a specific taxing jurisdiction to collect their sales tax. Sales tax was designed for brick and mortar type business and can get confusing when you have a mobile business or […]