News

If your online business sells to customers throughout the country, be prepared to start collecting more state and local tax. On June 21, the Supreme Court handed down its decision on South Dakota v. Wayfair, ruling that online merchants can be required to collect sales taxes even in states where they have no physical presence. (If you’re an online merchant, don’t panic: Miva partners with providers of specialized tax automation software that integrates with the Miva platform and automates the process.) 

The decision overturned the 1992 ruling of Quill Corporation v. North Dakota that barred states from requiring a business to collect sales tax unless the business had a substantial connection to the state. So, for example, Home Depot had to collect tax for online purchases in states where it had stores, but an online merchant without brick-and-mortar stores could sell the same item and not be required to collect tax. South Dakota could start collecting tax within 30-90 days, according to the New York Times story, “Supreme Court Widens Reach of Sales Tax for Online Retailers”.

 

But will you have to pay?

 

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