The internet has altered the nature of commerce forever. Buying and selling online have exploded in popularity. Due to the way old laws worked, this online activity was free of sales taxes. However, on June 21, 2018, the Supreme Court of the United States ruled that physical presence in a state was no longer necessary to collect sales tax online. eCommerce changed commerce, and now the Supreme Court has changed eCommerce.
The District of Columbia and most other states have already responded. Under the new rules, online sellers must know the sales tax rules for each state in which they have customers. Many entrepreneurs are now asking themselves, do I need to charge sales tax on my website?
The Upcoming Law in Wyoming
eCommerce sales tax rules in Wyoming are soon to take effect. Two different triggers will necessitate that businesses collect sales tax online. The first is the number of sales: if a business does at least $100,000 in sales per year, they must collect the sales tax on their transactions. The second is volume of sales: no matter how small the purchases, if a business conducts 200 or more sales per year in Wyoming, they must remit sales tax to the state.
These rules are only for Wyoming. Other states may or may not have similar rules. Companies must know the regulations for each state in which they do business.
It Doesn’t Have to Be So Difficult
Compliance with various regulations can be an arduous process, often requiring many employees to stay on top. In the fast-paced world of business, compliance is an anchor holding you back.
Even the best employees filling out the simplest forms can make mistakes. With online sales taxes employees must keep thousands of jurisdictions straight, along with the rules and regulations in the various municipalities. Wyoming online sales tax rules apply only to Wyoming, but they overlap with multiple city tax codes. If just one employee makes a single mistake while filling out paperwork by hand, the resulting fine can cost a business thousands of dollars.
It’s easier to simply automate. Computers can handle tasks like online sales tax record keeping far more efficiently than human beings can, allowing you to cut labor costs. This is why over 20,000 companies worldwide use Avalara’s special software to alleviate their sales tax recordkeeping burdens.
The software easily integrates with any business, getting rid of bothersome paperwork. It makes the right call every time, for every sale in any of over 12,000 tax jurisdictions and for millions of goods and services.
After you collect sales tax online, it gathers the data, fills out the proper forms and files them. Avalara handles this process hundreds of thousands of times each year, and in case of an audit, it keeps track of your exemption certificates as well.
Disclaimer: The information in this blog post is provided for general informational purposes only and should not be construed as legal advice from Forix or Avalara.