3 steps to readying your business for economic nexus 

It  took  26  years  for  the  Commerce
Clause  to  catch  up  with  ecommerce.   On  June  21, 2018,  the Supreme Court  ruled  in  the  case  of  South Dakota  v. Wayfair,  giving  way  for  states  to 
impose sales
tax on remote sellers:
based  on economic nexus  (the volume or dollar value
of sales into
a state) and
not just physical

Settling  the  debate 
took  years, but  requiring  companies  to  comply  will  likely  come  much  faster.  And  it’s  not  just  Internet  retailers  that need to  pay  heed  to  tax  rule  changes.  Any  business  in  any  industry  that  sells  to  or  services  out-of-state customers, online  or
offline, could be on the hook for sales tax under economic nexus.

are three actions every tax manager, finance leader, and business owner should
take to prepare:

  1.  Reassess Nexus: Where are your current (and future) customers?

    Why it’s time: Now that the Supreme Court
has given the green light
to one state to collect
sales tax on remote
sales, others are
undoubtedly following suit.  Already, more than 20 states have economic
nexus laws in place or pending (see map). What that means is
that, in addition
to states where
you have physical
presence nexus,
you could be required
to collect and remit sales
tax on sales into s
tates where you
meet the minimum
thresholds for
economic nexus:
https://www.avalara.com/us/en/learn/sales-tax/South-Dakota-Wayfair.html  either based
on volume of sales or total revenue from those sales.

    The Bottom
If you are uncertain of your nexus
obligations or want to be extra sure your business
is compliant under
new economic nexus regulations,
consider a
nexus analysis
: https://www.avalara.com/us/en/products/professional-services/ NexusAnalysisStudy.html.


  2.     Revisit
Will you now need to collect and remit sales tax in more states?

    Why it’s time: If your sales
activities give you nexus in more states,
you’ll need to register
to collect sales
tax, remit tax, and file sales
tax  returns  in those  states.
How  and  when  you 
need  to  file 
returns  and  remit  sales 
tax  can  be  drastically  different  from  state-to-state. 
Keeping on
top of your obligations with the additional burden of economic nexus
could become a challenge to manage manually
or with
in-house staff.

    The Bottom
Consider  the  benefits 
of  having  third-party  handle 
registration  and  returns  for  you.  Avalara 
has   full  suite  of
technology solutions
that address every stage of tax compliance from accurate
rate calculation to on-time returns
filing to
business license and tax registration services: https://www.avalara.com/us/en/products/professional-services.html.

Is there a better way?

    Why it’s time: How  you  manage 
sales  tax  and 
use  tax  today 
may  not  be  enough  to  keep  you  compliant  once  states  start  expanding and  enforcing economic  nexus. If  the  company  is  growing  or  planning  to  grow, its  tax obligations will likely grow  too. If your financial systems  aren’t optimized for tax changes
of this magnitude or you are too
reliant on staff
to keep you compliant, the company could
at greater risk for errors or audits.

    The Bottom Line:
Having a robust and reliable sales
tax solution in place today
prepares you to deal with any and all tax obligations that impact your business now or in the future.
Check out Avalara’s
cloud software solutions: https://www.avalara.com/us/en/products/sales- and-use-tax.html, which offer unparalleled accuracy
and reliability and turn-key set up in your current
ERP, ecommerce or accounting

    Rest Easy. Sales tax is complicated. And it’s not likely to get easier
anytime soon. But that doesn’t
mean it has to eat up resources and be a burden
on the business.  Explore  the  benefits  of  tax  automation.  Ask  your  platform 
provider  about  Avalara  or  talk  to  one of our  tax  automation  specialists. There’s peace  of  mind  in  knowing  you’re  doing 
sales  tax  right…no 
matter  which  way  the  gavel 


     About Avalara

     Avalara helps businesses of all sizes achieve compliance with transaction taxes, including sales and use, VAT, excise, communications, and other tax types. The company
comprehensive, automated, cloud-based solutions designed
to be fast, accurate, and easy to use. The Avalara Compliance Cloud® platform helps
manage complicated and
burdensome tax compliance obligations imposed by state, local,
and other taxing
authorities throughout the

 Avalara offers
more than 600 pre-built connectors into leading accounting, ERP, ecommerce and other business
applications, making the integration of tax and compliance
solutions easy for customers. Each year, the company
processes billions of indirect tax transactions for customers and users, files
more than a million tax returns, and
manages millions of tax exemption
certificates and other compliance documents.