The e-commerce landscape has changed drastically as a result of the U.S. Supreme Court’s 2018 decision in South Dakota v. Wayfair. Their ruling allows states to mandate out-of-state sellers, including online retailers, retail service providers, and numerous other businesses, to collect and remit sales tax for sales made in that state, even if they don’t have a physical presence there.
Since this decision, nearly every state has enacted sales tax nexus requirements that determine the collection requirements between business and state. The logistics of monitoring state sales tax provisions and payment deadlines can be a daunting task for businesses that do not have a robust sales tax payment infrastructure in place. With a technologically-advanced automated tax payment solution, online sellers can simplify their sales tax obligations and stay tax compliant.
Manage Nexus Requirements with Anybill
Understanding the sales tax laws that apply to your business is not always easy, but it is vital to stay compliant. This gets increasingly complex if your business operates across state lines, which triggers ‘nexus’. There are six different sales tax nexus laws that a state may recognize.
- Marketplace facilitator
- Non-collecting seller use tax
- Physical presence
According to Vertex research, there were over 600 standard sales tax rate changes in 2018 alone. From 2008 to 2018, there were nearly 6,000 new and adjusted sales tax rates. This is an overwhelming amount of information to organize without an efficient tax payment operation in place.
A 2019 Quickbooks survey revealed that business owners found sales tax complex, with 53 percent stating that managing sales taxes for their businesses was either “somewhat” or “not at all” clear. With the variety of sales tax laws that a state may recognize, nexus makes it nearly impossible to utilize manual tax payments methods. More businesses are turning to tax payment automation to help stay up-to-date with changing policies, manage jurisdiction reporting requirements, and ensure timely payments. As states look to sales tax to maximize its revenue streams, it is even more important for retailers to manage sales taxes accurately to reduce the risk of audits or penalties.
Turn to Anybill Tax Payment Automation
South Dakota v. Wayfair will continue to impact the way that businesses operate. With over 11,000 sales tax jurisdictions, adding Anybill’s automated tax payment solution can help businesses meet various payment deadlines for every jurisdiction they submit payments to.
Implementing Anybill’s automated tax payment solution will give you the confidence to conduct business in new and existing markets, knowing you can stay compliant with new and existing jurisdiction requirements.
Over 2,000 businesses, including major online retailers, trust Anybill with their tax payment demands. Learn how our flexible, scalable solution can help. Request a demo today.