Technically, the question in the Wayfair Supreme Court was the constitutionality of the South Dakota Sales Tax Act. Under the Act, only remote sellers with a turnover of at least $100,000 must be taxed on customers in South Dakota or 200 or more in sales to South Dakota customers within a year. The law prohibits retroactive liability. In addition, South Dakota is a member of the Streamlined Sales and Use Tax Agreement, which is an agreement between 24 states to propose simplified and consistent methods for collecting VAT. Jennifer McLoughlin: You mentioned Brad, the Streamlined Sales and Use Tax Agreement, and you found that no state has joined this agreement since the U.S. Supreme Court decision. Why do you think that no state has joined the agreement since that decision? In particular, since Justice Kennedy`s opinion emphasized this agreement as one of the factors suggested by the South Dakota regime, it was likely admissible. Jennifer McLoughlin: Scott, who passes over to you with your background on Streamline, what do you think of the situation in which, since the Wayfair decision, we have not seen states jump aboard the agreement? The minimum attendance thresholds helped the Court to consider the law to be constitutionally sound. The court appreciated that South Dakota law « applies a safe haven to those who perform only limited activities in South Dakota. » D.h. Tax legislation protects small traders. Win for this little guy! WASHINGTON, D.C. – OCTOBER 08: Retired U.S.
Supreme Court Justice Anthony Kennedy… [+] The solemn swearing-in of Brett Kavanaugh in the East Room of the White House, October 8, 2018 in Washington, DC. Kavanaugh was confirmed in the Senate 50-48 after a controversial trial that included several women accused of sexual assault. Kavanaugh denied the charges. (Photo: Chip Somodevilla/Getty Images) Click here to download the status information of Ernst and Young. Is there any software? Yes, yes. Does it deal with all parts of VAT? No no. This is where the real problems sneak in, it is that there are many more details that need to be dealt with than VAT itself. « The correct calculation and transfer of sales taxes on all e-commerce sales is likely to be surprising for many retailers. More than 10,000 countries collect revenue taxes, each with « different tax rates, different rules for exempt goods and services, different definitions of product category, and different standards for determining whether a seller does not have a significant presence in the jurisdiction. » Jennifer McLoughlin: So, in terms of selling awareness, Scott, what steps do you think the states or the sellers themselves can take to raise awareness? This could be the burden of a state to get this information, but I would like to have your sense of what can be done to make sellers aware of this problem.
In fact, the hubbub boils down to a seismic shift in the U.S. turnover tax: I refer briefly to the second year. What were the dominant legislative or regulatory trends among the states that reacted to Wayfair last year? Last year, to offset or offset compliance costs, we increased prices. So there has been some inflationary effect because of VAT. But I can now tell you that during this period, from March 1 to May 31, we saw a 57% and a half drop over the year. Removing the physical presence requirement will likely open the door to all states that collect a turnover tax and ultimately force distant sellers to collect their tax.