Sales Tax and the Online Retailer

Consumers have changed their buying practices. More than ever, people are turning to their computer or mobile device when they want to purchase an item. Meanwhile the ecommerce market is growing rapidly to keep up with these trends and state and local governments are also trying to adjust to these changes as well. Sales tax rules are changing all the time and with the gap in sales tax collection due to online sales, you can bet that they will continue to change.
In an effort to absorb some of that lost revenue, states are getting creative with the types of activities that will give you nexus (or the obligation to collect sales tax in a particular state.) 

Click-through nexus is becoming more and more common as a result. The specifics of the law varies by state, but generally click-through nexus comes in when you’re selling online and a partner of yours in another state puts a link on their website directing consumers back to you. If you generate enough revenue from the link, you may create nexus in that state.
Sales tax is confusing as it is, but for ecommerce retailers it may become even more challenging if new laws like the Marketplace Fairness Act pass requiring all online purchases to include sales tax. It’s important to stay ahead of the curve and be prepared as sales tax changes come your way. Keep your business moving forward by automating your sales and use tax compliance with Avalara. 
For more information on sales tax compliance automation, contact Avalara:
Avalara Sales Tax
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