The recent U.S. Supreme Court decision in South Dakota v. Wayfair allows states to impose sales tax on more out-of-state online sales. But does it mean your business must immediately begin collecting sales tax on online sales to all out-of-state customers? No. You must collect such taxes only if the particular state requires it. South Dakota’s law, for example, requires out-of-state retailers that made at least 200 sales or sales totaling at least $100,000 in the state to collect sales tax. But laws vary dramatically from state to state.
PA’s Act 43 of 2017 requires businesses that earn at least $10,000 in sales in Pennsylvania annually – but do not have physical presence in the state – to collect sales tax. The law is rolling out in two phases, with the first phase completed last April and the second phase to be completed in April 2019. The second phase will require businesses to collect sales tax on online goods like electronic copies of books or music. Contact us with questions.