Question

What are the consequences of not following Wayfair and not collecting and remitting sales tax in the identified jurisdictions?

Answer 1

Wayfair potentially increases the complexity of complying with sales and use tax laws.

The decision in Wayfair is far-reaching for any business with sales in more than one state.

Following are the consequences of not following Wayfair & remitting sales tax in the identified jurisdiction:

1. Without the Wayfair, states cannot begin taxing remote retailers and recouping that revenue. All remote sellers who ship or deliver goods or services across state lines may be impacted by Wayfair.

2. Companies formed and operating outside the United States and that have no physical presence in the United States may be impacted by Wayfair.

3. More remote sellers will register for sales/use taxes and, as such, wholesalers may be able to collect a valid resale certificate from their customer, the retailer, who directs them to drop ship goods to the retailer’s customer. Without following wayfair it wont be achievable.