3 Years After Wayfair Decision, Issues Continue

We just had the third anniversary of the Wayfair decision, i.e. South Dakota vs. Wayfair, when the U.S. Supreme Court eliminated the nexus rule requiring physical presence in a state for sales tax liability. That landmark ruling is still impacting retailers, especially smaller ones, in terms of compliance. Also, with so many companies turning on omnichannel services in the past year as stores shuttered, the addition of new channels has sales tax implications. For instance, curbside or store pickup and shipping within a city can be taxed at one rate, but another rate applies if a store shipment goes to an address outside that jurisdiction.

In our latest MCM CommerceChat podcast, Liz Armbruester, SVP of global compliance for tax services firm Avalara, and Kevin Permenter, a research manager with IDC, provide an update on the ecommerce taxation landscape. We also discuss the tax implications of the explosion in ecommerce since the pandemic, including how adding new sales channels equals new complexities.