Kim Kardashian’s Skims Apparel Company has been held accountable for improper sales tax collection in New Jersey.
Kim Kardashian’s Skims Apparel Company has been held accountable for improper sales tax collection in New Jersey. The company, which is primarily an online retailer, was found to have collected sales tax on tax-exempt clothing items sold to New Jersey consumers from 2019 to 2024.
This violation of New Jersey’s Consumer Fraud Act led to a consent order requiring Skims to pay a $200,000 civil penalty and to implement reforms to prevent future violations. The company has already remitted the improperly collected taxes and begun identifying and reimbursing affected customers. The takeaway?
Sales tax rules vary by state, product type, and transaction — and even well-known brands can get it wrong. If you sell online, this is your reminder to:
- Sales tax taxability varies by state
- Marketplace complexity increases exposure
- Incorrect tax collection is just as risky as no collection
- Public enforcement invites broader scrutiny
- Automation without oversight creates risk
- Sales tax rules are dynamic, not static
At DDH, we help businesses stay compliant before issues make headlines.
About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery 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 Davis Davis & Harmon, 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.