Business-to-consumer sellers face a tremendous tax burden following Wayfair decision.
In June 2018, the U.S. Supreme Court issued its decision in South Dakota v. Wayfair, ruling states and cities could require an out-of-state seller with no in-state presence to collect tax on sales to its residents. As a result, business-to-consumer sellers needed to understand the sales tax protocols for any state where they have established economic nexus. To make things easier, states passed marketplace facilitator laws to make collecting sales taxes less cumbersome for both remote sellers and states.
In his article for Industry Today, BPM Partner John Hayashi defines successful marketplace facilitator relationships and examines the complexities that still exist with companies and their sales tax obligations.
About John Hayashi
John serves as a Managing Director of Tax at BPM, with nearly 30 years of public accounting and private industry experience in State and Local Taxes (SALT). John helps his clients respond to SALT issues, with a specialization in sales tax and use tax that's currently in high demand after the Supreme Court's decision in South Dakota v. Wayfair, Inc. (2018). He’s a leader in BPM's SALT group, which serves as a single point of contact for clients to analyze their state and local tax liabilities, as well as state and local tax deductions. John listens to client needs to plan and implement strategies that minimize identified liabilities.
BPM for Consumer Business
BPM is one of the largest California-based accounting and consulting firms, ranking in the top 50 in the country. Our Consumer Industry Group understands the multifaceted sectors that make up the Consumer Industry. From online retail, to food & beverage and wholesale, our professionals are committed to providing consumer businesses with financial strategies to compete in a dynamic market. In addition to traditional audit and tax services, our extensive knowledge in state and local tax, R&D credits, international tax, cybersecurity, M&A, technology solutions and more, allows us to seamlessly provide an integrated approach to help clients at any stage of their business cycle. For more information, visit https://www.bpmcpa.com/ConsumerBusiness.