On June 21, 2018, the Supreme Court of the United States rendered its decision in the case of South Dakota v. Wayfair and held that a State may require businesses to collect sales taxes from consumers when the volume of sales on its territory exceeds a certain threshold even if the businesses do not have a physical presence there.
This decision reaffirms the States’ power for assigning tax obligations to foreign businesses, within established limits. Unlike tax systems applicable in several jurisdictions, the rules analyzed in the Wayfair case resonate not only in the field of e-commerce but also for many more traditional businesses. Moreover, given the global trend and information exchanges between countries, this new consideration in the tax world is changing things for many Canadian businesses developing the U.S. market.
- Principal distinctions in GST/HST systems and the system applicable to U.S. sales taxes; and
- Presentation of current situation and expected developments to help you determine the next steps in U.S. tax compliance and risk management.