Internet Retailer: Online Subscription Retailers Must Prepare for New Sales Taxes

Check out latest guest post on Digital Commerce 360 and Internet Retail from OceanX CEO and Founder, Georg Richter, about the impact of the U.S. Supreme Court decision in South Dakota v. Wayfair on subscription focused retailers. Read the full article here an excerpt copied below.

For years, many e-commerce transactions have been conducted without the imposition of sales tax. A recent U.S. Supreme Court decision, however, might change that. In South Dakota v. Wayfair, the justices ruled that states can require e-commerce retailers to collect taxes on sales made within them, even if the retailer has no physical presence there.

As states react to this ruling, each will most likely decide its own revenue threshold for sales tax collection. In South Dakota, where the case originated, the current law requires merchants to collect a sales tax only if they conduct more than $100,000 in annual sales or complete a total of 200 transactions, which will have the biggest impact on a fairly specific cross-section of retailers.

Read the full article.