Navigating Sales in a Post-Wayfair Environment

Multistate – Almost two years after the Supreme Court’s Wayfair decision, most companies know by now that states can require remote sellers with no physical presence to collect sales tax. The taxability of specific items and sales tax exemptions vary by state, so many companies are struggling to determine which items to collect tax on and which items are exempt in each state. According to a recent New York Post article, eBay collected New York sales tax on items specifically exempt under New York law. This overcollection eventually resulted in eBay processing a refund to the customer who called attention to the issue. The amount of the refund was not cited in the article, but it included numerous purchases by this customer over a specific period of time.

When an issue like this affects a large number of customers for a retailer, the amount of the refund, administrative costs of processing these refunds, combined with any customer relations nightmare, can be staggering. In a post-Wayfair environment, remote sellers must also determine for each state whether or not sales tax should be collected on various separately-stated charges to customers, such as shipping or delivery. Have questions about your business post-Wayfair…give us a call.

About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts (DDH LLC) specializes in sales/use tax audit consulting and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At DDH LLC we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.

For sales/use tax compliance questions or audit-related concerns, we are here to help!

Contact us at Davis Davis & Harmon LLC or call 972-488-5000

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.