The US Supreme Court’s South Dakota v. Wayfair ruling, which overturned the physical presence requirement for state sales and use tax purposes, is shifting the balance around corporate taxation in the United States.
There is a high possibility that this will start a trend in the Unites States toward more robust transaction taxes and increasingly aggressive state and local enforcement, with an array of exemptions and credits to navigate.
As the effects of Wayfair case kick in, companies will need to re-evaluate their long-term strategy for taxation and refocus their resources around critical risks. They will also need to strategically evaluate opportunities and potential exposures around state taxes moving forward.
A challenging path forward
The full implications of the Wayfair ruling and its ripple effects for companies will unfold over the coming months. There are many unknowns, including the effect of Wayfair on inbound foreign sales and whether future congressional action will set standards for a variety of state nexus requirements.
Understanding the implications of Wayfair
To help you understand the implications of the ruling, Grant Thornton US have created several insights and are hosting a series of webcasts to help you understand both the US and international implications.