On June 21, 2018, in the case of South Dakota v. Wayfair1, the Supreme Court ruled that states may impose sales tax on remote sellers based on the volume or dollar value of your sales in a state, whether or not your business has a physical presence there.
As a result, eCommerce businesses are subject to new tax rules when selling across state lines. Known as nexus, these sales taxes fall into three categories:
Based solely on thresholds of sales into a state by volume or revenue.
Sales generated by online referrals or ads links.
Companies that work with a partner who has Nexus.
Each state has its own laws about what business activities trigger nexus. Local jurisdictions within states may also have unique regulations.
With Cybersource’s Global Tax Calculation solution, you can provide real-time tax calculation for your customers based on their city, county, state and country. Let us take care of complex jurisdictional rules and constantly changing tax codes, so you can focus on running your business.
1 South Dakota v. Wayfair, Inc. - 138 S. Ct. 2080, 2018
2 State-by-state guide to economic nexus laws, as of April 9, 2020 (accessed 21 April 2020)
3 State-by-state guide to click-through nexus laws, as of July 2, 2019 (accessed 21 April 2020)
4 State-by-state guide to affiliate nexus laws, as of May 6, 2019 (accessed 21 April 2020)
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