FREQUENTLY ASKED QUESTIONS SALES AND USE TAXES ECONOMIC NEXUS AND WAYFAIR

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FREQUENTLY ASKED QUESTIONS SALES AND USE TAXES ECONOMIC NEXUS AND WAYFAIR

PART 1:  HOW DOES WAYFAIR IMPACT MY BUSINESS AS A REMOTE SELLER

 

Q:  How many states have passed economic nexus sales and use tax law?

A:  All states that impose sales and use taxes except for Florida and Missouri have passed economic nexus laws for sales and use tax purposes.  Please note that Alaska, Delaware, Montana, New Hampshire and Oregon do not impose a state sales and use tax.

 

Q:  Which sales are used to determine economic nexus threshold?

A:  It will depend on the state.  Some states use gross sales, other use retail sales (sale for resale sales are not included) and others use taxable sales (exempt sales are not included).

 

Q:  When determining nexus threshold, do I review Customer Bill to Location or Customer Ship to Location?

A:  Ship to location for tangible personal property or where the services are being used for services.

 

Q:  Does Wayfair affect traditional physical presence nexus? 

A:  Nexus can still be established through a physical presence in a jurisdiction, such as a warehouse, employee, or office in the state.

State and Local Tax Services

Freeman Law can help taxpayers navigate state tax laws.  We will provide value-driven services and provide practical solutions to complex tax issues. Schedule a consultation or call (214) 984-3410 to discuss your Local & State tax concerns and questions?