Experienced
Small Business Accountant - If you make sales into local jurisdictions that have local sales
taxes, you must now collect those taxes. This may require you to register,
collect, and remit additional local taxes.
Why is this changing
now?
On June 21, 2018, the
U.S. Supreme Court ruled in South Dakota v. Wayfair that
physical presence is not required for sellers to be responsible for sales tax
collection. Now all Minnesota sellers – regardless of their location – must
collect state and local sales taxes based on the location of their customer.
I am currently
|
What do I need to do?
|
Collecting local sales taxes because I have a
physical presence or chose to voluntarily collect
|
Continue to collect these local taxes
|
Collecting local sales
taxes, but only in the areas I am physically present
|
Register and collect any local sales taxes on
sales you make into local taxing areas where you are not physically present
|
Not collecting any
local sales taxes
|
Register and collect any local taxes where you
make sales into local taxing areas
|
What does this mean for me?
You must collect local tax even if you don’t have a physical presence in a local taxing area.
If you would
like to discuss how these affects your particular situation, and any planning
moves you should consider in light of them, please give me a call.
Amare Berhie, Senior Accountant
CFO Services http://youtu.be/EYJdQtbPZAI
(651) 300-4777
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