A US supreme court decision (in S Dakota v Wayfair) allows states to impose a US sales tax collection obligation on remote sellers without a physical presence in the state. 

Practically all US states are now enforcing their own ‘economic nexus’ provisions, i.e. the seller must have exceeded annual state sales of a certain value or number of transactions. It can be difficult monitoring the many state laws that are in effect. Some of the issues businesses are grappling with include registration obligations, identifying any historical liability issues and remediation options. With this burden comes the need to assess and implement procedures and technology to manage the change, such as updating billing systems and infrastructure with newer tax software.

The map below reflects individual state guidance on ‘economic nexus’ provisions’, but it is not intended to provide a comprehensive list of all matters related to the Wayfair decision. 

Please contact our US sales and use tax specialist who can assist you in assessing the impact of the Wayfair decision and how PwC can support your business, including advice and tools available to meet any potential compliance challenges.

If you have any questions about the information on this page please contact;

• Melissa Hogan +44 (0) 7841 467300  melissa.hogan@pwc.com