The Wayfair Decision Changed Everything
The 2018 South Dakota v. Wayfair Supreme Court decision fundamentally altered the sales tax landscape for remote sellers. No longer do you need a physical presence to trigger tax obligations.
What is Economic Nexus?
Economic nexus requires out-of-state sellers to collect sales tax when their sales exceed certain thresholds in a state, regardless of physical presence.
Common Economic Nexus Thresholds
- $100,000 in annual sales
- 200 transactions per year
Some states use different thresholds. Check each state’s requirements.
Who Must Comply?
You likely have Wayfair compliance obligations if you:
- Sell products online to multiple states
- Exceed $100,000 in sales in any state
- Process 200+ transactions in any state
- Use marketplace platforms (Amazon, eBay, etc.)
State-by-State Requirements
Since the Wayfair decision, all states with sales tax have adopted economic nexus laws. Each state has its own thresholds and effective dates.
Compliance Checklist
- Analyze sales data by state
- Identify nexus-triggering states
- Register for sales tax permits
- Configure tax calculation systems
- Establish filing procedures
- Maintain ongoing compliance
Penalties for Non-Compliance
States are aggressively enforcing economic nexus. Penalties can include:
- Unpaid taxes plus interest
- Substantial penalties
- Audit costs
- Criminal charges in extreme cases
How We Can Help
Our Wayfair compliance services help you navigate these complex requirements and avoid costly mistakes.