How the Sales Tax Playbook Has Changed Since the Last U.S. World Cup

When the FIFA World Cup was last hosted in the United States in 1994, the internet was still in its infancy. Amazon hadn't launched, online shopping was virtually nonexistent, and businesses collected sales tax based almost entirely on where they had a physical presence. 

Fast forward to today, the game has completely changed. 

The 2026 FIFA World Cup marks the tournament's return to North America after more than three decades. During that same time, the sales tax landscape has undergone one of the most significant transformations in its history. Rules that once seemed straightforward have been replaced with a complex web of state-and jurisdiction- specific regulations, complex (especially with digital products) taxability rules, economic nexus thresholds, and marketplace facilitator laws. 

As we're witnessing this exciting World Cup, it's worth taking a look at just how much the sales tax world has changed since the tournament was last played on U.S. soil. 

Kickoff: 1994 and the Era of Physical Presence 

Back in 1994, sales tax compliance was relatively simple. 

Businesses generally only had to collect and remit sales tax in states where they maintained a physical presence, such as an office, warehouse, retail store, or employees. If your business wasn't physically located in a state, chances were you didn't have to worry about collecting sales tax there. 

For many companies, this meant registering in only a handful of states and managing compliance with relatively limited resources. 

The internet had yet to reshape commerce, and interstate e-commerce wasn't driving tax policy the way it does today. 

Halftime: The Internet Changed Everything 

Over the next two decades, online commerce exploded. 

Companies of every size suddenly had the ability to sell products and services nationwide without opening a single storefront. What once required a physical location could now be accomplished with a website and an internet connection. 

While e-commerce created tremendous opportunities for business growth, it also exposed a growing challenge for states that were losing tax revenue from remote sales. 

For years, businesses operated under rules that hadn't kept pace with how commerce had evolved. 

Then everything changed in 2018. 

Extra Time: Wayfair Rewrote the Rulebook 

Perhaps no event has had a greater impact on modern sales tax than the U.S. Supreme Court's decision in South Dakota v. Wayfair. 

The ruling gave states the authority to require remote sellers to collect sales tax based on their economic activity within the state. This concept, known as economic nexus, fundamentally changed how businesses determine their sales tax obligations. 

Today, nearly every state with a sales tax has adopted economic nexus thresholds based on sales revenue, transaction counts, or both. 

For many growing businesses, sales tax obligations can arise long before they establish any physical footprint in a new state. 

Marketplace Facilitators Changed Compliance Responsibilities 

Another major change since 1994 is the rise of marketplace facilitator laws. 

Today, businesses often sell through platforms like Amazon, Etsy, or eBay. In most states, these marketplaces are responsible for collecting and remitting sales tax on behalf of third-party sellers. 

While this has reduced some compliance responsibilities, it hasn't eliminated them. 

Businesses still need to understand:

• Which sales count toward economic nexus thresholds

• Which transactions they're responsible for reporting

• Whether additional registration or filing obligations still exist

Marketplace sales have simplified certain aspects of compliance while adding new layers of complexity that didn't exist three decades ago. 

Digital Products and SaaS Created an Entirely New Tax Landscape 

In 1994, software came in a box. 

Today, businesses sell subscriptions, cloud-based platforms, streaming services, downloadable products, digital goods, and Software as a Service (SaaS). 

The challenge? 

States don't agree on how these products should be taxed. 

Some states fully tax SaaS. Others exempt it entirely. Many tax digital products differently than downloaded software, and taxability rules continue to evolve through legislation and administrative guidance. 

For software companies and other digital businesses, determining where products are taxable has become one of the most challenging aspects of multistate compliance. 

Compliance Has Become an Ongoing Process 

Thirty years ago, sales tax compliance was often viewed as an administrative function. 

Today, it's a strategic business process. 

Growing companies must continuously monitor:

• Economic nexus thresholds

• Changing taxability laws

• Legislative changes

• Product and service classifications

• Exemption certificate management

• Registration and filing requirements across multiple jurisdictions 

What once involved filing returns in a few states can now require compliance across many jurisdictions, each with its own rules and filing requirements. 

As businesses expand, sales tax has become an ongoing responsibility rather than an occasional task. 

Final Whistle 

When fans gather to watch the 2026 FIFA World Cup, they'll see familiar stadiums hosting the world's biggest sporting event once again. 

But for businesses, the sales tax landscape would be almost unrecognizable compared to the last time the tournament was played in the United States. 

Physical presence has given way to economic nexus. Traditional retail has expanded into e-commerce and digital services. Marketplace facilitators have reshaped compliance responsibilities, and state tax laws continue to evolve at a rapid pace. 

For finance and tax teams, staying ahead of these changes isn't just about avoiding penalties... it's about supporting growth with confidence. 

As the rules of global commerce continue to evolve, businesses need more than a game plan. They need a compliance strategy that can keep pace with wherever growth takes them. 

Whether your company is expanding into new states, launching digital products, or navigating complex multistate obligations, understanding today's sales tax landscape is the first step toward staying compliant in tomorrow's game.