COVID-19 and Sales Taxes
To all Tax Managers, Directors, Controllers–
Let’s face it. There is an increased demand on Tax Departments. In an economy where corporate tax compliance has become inefficient due to layoffs and outdated technology at the same time, states are hiring more auditors. Contact us for a FREE tax consultation.
As the new coronavirus (COVID-19) continues to spread globally, governments worldwide are trying to figure out the best way to bolster the slowing economy. In some countries, that involves sales tax and VAT filing and payment extensions and even temporary rate reductions. Other nations, including the United States, are just beginning to respond.
So that you can focus on your family and business rather than hunt for information, we’re compiling sales tax news related to the COVID-19 outbreak on this webpage. It will be updated regularly as more information becomes available.
The 2018 South Dakota v. Wayfair decision states that sellers of goods and services must now charge sales tax to their customers in South Dakota, even if the seller does not have a physical presence nexus in the state. However, this case has significant and far-reaching implications that extend well beyond South Dakota.
The U.S. Supreme Court ruled 5-4 that could completely change the way states tax online commerce (South Dakota v. Wayfair, Inc.). The South Dakota v. Wayfair decision states that sellers of goods and services must now charge sales tax to their customers in South Dakota, even if the seller does not have a physical presence nexus in the state. However, this case has significant and far-reaching implications that extend well beyond South Dakota and affects all 45 states that collect Sales Tax.
As tax experts we have compiled resources that will help you understand how this U.S. Supreme Court decision will impact your organization, including what you need to do to minimize your tax exposure and compliance burden.
For more information contact us today for information about the tax relief for businesses and individuals impacted by COVID-19. Relief may include filing extensions as well as interest and penalty waivers for a host of taxes, including lodging tax and sales and use tax.