ABOUT SERVICES INDUSTRIES KNOWLEDGE CENTER NEWS & EVENTS
What was the Quill Decision?
What is the Wayfair Decision and what did it change?
What does the Wayfair Decision mean to businesses in general?
What types of businesses does Wayfair apply to?
What should my business be doing in light of Wayfair?
How many states does this apply to? When does it kick in?
What are some other consequences of Wayfair?
Welcome to EisnerAmper's Wayfair Video Page. Click on a question to learn more about the Wayfair Decision. Happy shopping!
What was the Quill Decision?
~Required "physical presence" for sales tax
nexus, which was misunderstood
~Wasn't explicitly limited to sales tax, it
evolved to be that way
What is the Wayfair Decision and what did it change?
~Challenged Quill
~Overturned physical presence requirement
~Nexus can be established through economic
presence alone
What does the Wayfair decision mean to businesses in general?
~Nexus may be established based on only
having sales in a state
~Businesses have an expanded footprint for
at least sales taxes
~Will likely need to start filing tax returns in
many other states
~Heavier compliance burden, increased costs
of doing business
What types of businesses does Wayfair apply to?
~Many think that this only applies to
e-Commerce and internet sales and that it
is limited to sales tax
~Applies to service companies and any
business with remote sales, including SaaS
and computer software companies
~Even if all sales are for resale, may have
increased record-keeping requirements
What should my business be doing in light of Wayfair?
~Each situation is different
~Evaluate Wayfair and its potential
application to your business
~Evalutate your nexus footprint and what
that may mean to you
How many states does this apply to? When does it kick in?
~About 30 states
~Over the next 6-12 months, virtually all
states are expected to follow
~Some states will start enforcing as early as
October 1, 2018, others January 1, 2019
~Big Question: When can you start to adhere
to it?
What are some of the other consequences of Wayfair?
~States will be emboldened to apply holding
to other types of taxes; such as income
taxes and net worth taxes
~Companies may need to make significant
investments in IT systems and other
resources
