Retail: The Impact of Ecommerce on Sales Tax Compliance

It’s no surprise that analysts are predicting record breaking online sales numbers this year as shoppers and retailers promote safe shopping guidelines. Lee Roberts, Shareholder and Director of Sales touches on what retailers should be thinking about in regard to online shopping and the sales tax implications that come along with this ecommerce environment.

Only have a few minutes? Jump to the parts relevant to you!

• 2:02: Sales tax and the implications of an online sales environment
• 2:42: Taxability of products – which states do you need to pay highest attention to?
• 3:40: Digital goods, clothing and food – what is exempt and what to consider to remain compliant.
• 6:00: The consumer side. Where are your customers located? Be ready for the potential impact of sales tax to the customer experience.
• 9:00: Gift cards. Generally considered cash equivalent and sales tax is not added. Retailers should consider outstanding giftcards could be considered unclaimed property in certain states. Track appropriately for accurate reporting.
• 10:14: Handling after holiday returns. What should be stated on a receipt to ensure compliance.

For more information on sales tax compliance and best practices please reach out to our team to start a conversation.