Huge sales tax changes are coming. Are you ready?
Earlier this summer, the Supreme Court ruled 5-4 in favor of the State of South Dakota v. Wayfair, Inc. Under the new ruling, states may now require businesses to register for licenses to collect and remit sales tax on revenue generated within a state where the business has no physical presence (i.e. online sales, out-of-state shipments).
The impact of this ruling is vast and complex, affecting tangible property and service businesses. Some states have already modified their sales tax laws. Others will undoubtedly pass legislation in their next sessions.
In Iowa, Governor Kim Reynolds signed into law a new tax bill that expanded and created new requirements on the collection and remittance of sales tax for businesses engaged in e-commerce transactions.
If your business is engaged in online sales, e-commerce, or ships product from states with physical presence to those with no physical presence, it is important to determine your state-by-state compliance requirements. We can help.
Please visit with an LWBJ tax professional to assess the taxability of your products and services, assure accurate compliance and bring clarity to this complex issue.