Oh, hey! This is my field. So just have this info out there, after the 2018 Supreme Court case South Dakota v. Wayfair, nexus (or economic presence, loosely) was redefined to include more than just physical location. Previously (and very roughly), if you didn’t have a physical presence in an area, you didn’t have to charge sales tax for sales made to states that you don’t regularly do business in.
After SD v. Wayfair, if an online vendor makes more 200 sales in a state or over $100,000 in sales to a state then they now have economic nexus and are required by law to collect and remit sales tax for sales made to residents in those states.
Now I have no direct knowledge of how many sales are made by many of our vendors to different states, but I suspect that many of the larger ones are non-compliant (mostly due to that 200 transactions part).
I say this not because I want to shed a spotlight on people not doing things correctly, but because I don’t want them to get in hot water. Should they get audited, they could easily rack up tens of thousands of dollars in fines and back taxes per state that they’re non-compliant with. That could easily put many of them out of business I imagine.
I’m also pretty sure that due to the newness of the law that there would be no problem if they registered and started collecting and remitting sales tax for these transactions even if they technically should have been doing so earlier.
If anybody has any further questions please feel free to direct message me. Also, legally, I can’t give advice on these matters, but I can point you at resources that can help clarify!
