“Break me off a piece of that Chrysler car.” -Andy from The Office
In the past two years, most states have converted to economnic nexus and South Carolina is no different! States see other jurisdications moving to econominc nexus and want a piece of that! Most states use sales tax as a significant source of revenue, second only to property taxes. They know there is money to be made here.
South Carolina enacted changes for remote sales in Revenue Ruling #18-14. Economic nexus is triggered by sales dollar amounts or number of transactions and each state has the ability to make their own rules.
The year of 2020 accelerated exommnerce growth by 4-6 years. Online retailers are reassessing their digital platforms to ensure they can keep up with increased sales and ever-changing compliance regulations.
Services and software are expanding areas of sales tax revenue. While you may not be taxable NOW…pay attention! This may change as states realize how much revenue they’re missing out on by not having these taxable.
QuickBooks Online has many great features but sales tax tracking is not one of them! Having sales tax management automated is key for accuracy, efficiency, customer satisfaction, risk management, and business growth. You can not grow if you are stuck figuring out sales tax!
There are some great resources out there to help you determine your liability and create a plan. The Avalara website has some FREE information to help you educate yourself and determine your liability.
About 45 states are saying, “Break me off a piece of that sales tax revenue.” Don’t just do nothing…know your liability.