by Will Frei
Published on 7 October 2013
eCommerce is one of the fastest growing sectors of the retail economy, and that's exactly why you might be at risk. The fact that global eCommerce is expected to top $1.5 trillion in 2013 is fantastic news for savvy internet retailers.
However, businesses aren't the only ones who see potential, and state and local taxing jurisdictions are taking new steps to tap this sector as a revenue stream. Unfortunately, many online retailers in the USA remain unaware of new and changing sales tax rules. This puts them at risk when it comes to compliance.
In this post, we will explain new trends in online sales tax and offer tips for how to reduce risk for your business.
Before the first ice age, when mail order catalogs ruled the earth, the US Supreme Court decided that a state could not make a business collect sales tax if the business didn't have a physical presence in that state.
Two things have happened in the wake of that primordial decision:
Let's examine that last point. Did you know the following?
Perhaps you did know of these developments-well done. But many online businesses don't realize that new sales tax legislation isn't just for the likes of Amazon and eBay; it impacts them too.
Without the right sales tax management application, your growth as a company may increase the risk of a negative tax audit. How? As your business grows, selling into new markets, you will likely encounter more of these new laws. And trying to manage sales tax laws in multiple states manually is tricky, if not next to impossible.
So what's a smart and savvy ecommerce retailer to do?
Here are three steps you can take right now to help reduce your sales tax risk.
Taking these steps now will help ensure that you don't get any nasty surprises that will impede your growth.
Keep calm and sell on.
Guest post by by Will Frei, Sales Tax Specialist at Avalara