Not long ago, clicking a computer mouse to buy something was an idea of science fiction. Today, of course, e-commerce is how a significant amount of shopping takes place in general. Capital One reports that global e-commerce retail sales will hit some $6.91 trillion this year, up 9.5% from total e-commerce retail sales in 2023.

Businesses who sell over the internet must pay a lot of attention to far-flung economic tax thresholds – all states with a statewide sales tax and more than a few localities enforce them now – so it’s easy to overlook a more obvious tripwire like physical presence.

It seems like a simple part of selling online. You sell an item to a customer, they decide for whatever reason to return it, and you give them a refund. Simple.

Except when sales tax becomes involved.

We hear a lot about nexus and various thresholds but not as much as about tax situs.

Online retailers and eCommerce companies have been the focal point of taxing jurisdictions and their updated nexus laws for years.

Our third annual survey of financial professionals revealed a sales tax storm in many industries. Financial leaders continue to lean on internal resources while wrestling with the current economy, inflation and a tight job market.

Retail/eCommerce respondents to our survey reported challenges such as audits, timely filing of sales tax returns and charging the correct sales tax.

Candy, flowers, diamonds, romantic dinners out or a movie snuggled on the couch: The year’s biggest day for dates looms again, and here’s an update on sales tax considerations for Valentine’s Day.

Shipping is indispensable to eCommerce yet sales tax on it remains a mishmash of regulations across the states.

In our previous blog, we looked at how exemptions, the taxability of the item being shipped and selling into tax-free states affect sales tax on shipping. What other factors change your shipping/sales tax obligations and in what states?

Online sales could not exist without shipping, and the charges associated with shipping are subject to sales tax in many states.

Question is, who has to pay that sales tax these days, and where?

Shopify is one of the most popular e-commerce platforms. The e-commerce website builder claims that more than 1.7 million businesses have made over $200 billion in sales with the Ottawa, Ontario-based company’s websites.

Free trials, tiered plans, 24/7 support, thousands of app integrations, unlimited storage and bandwidth… Truly does sound like whatForbes called an “all-in-one platform [with] everything you need to launch an online store.”

What about sales tax? How does Shopify handle sales tax?

How big were online sales on Monday, Nov. 28?

Holiday shopping season is here again – and eCommerce looks to be bigger than ever. But retailers looking forward to perhaps record online sales have to remember how to comply with widely divergent sales tax regulations.

Remote retail sales just got rockier in Colorado, which has begun imposing a 27-cent fee on every retail delivery made by motor vehicle to a destination in the state.

Holiday time already? In many states, sales tax holidays have been in full swing this year and will continue for months to come. Some of the deals are long-standing; others have been trotted out by lawmakers claiming to want to help constituents weather inflation.

Understanding economic and physical nexus and the taxability of your products and services goes a long way to ensuring your sales tax compliance. But nothing’s that simple with sales tax. 

Online retailers face a lot of challenges today. Sales tax obligations are among them. 

Several recent court cases show how tricky the legal system can be for online sellers managing sales tax obligations.