While the recent Supreme Court ruling and the titles of many articles on the subject paint with broad brush strokes, the fine lines indicate that future changes to e-commerce taxation will evolve state by state. Which means this is not a one-and-done announcement, but rather a subject that will need consistent monitoring as “retailers that currently sell remotely into jurisdictions where they are not collecting and reporting taxes face a potentially significant challenge. These companies should immediately review their current sales tax processes and supporting technology to make sure they can accommodate any new requirements that now apply to their online sales,” as stated in a recent Vertex article.
The good news is that the team at Object Edge has built custom cloud connectors to two of the nation’s largest commerce tax solutions including Vertex and Avalara. And we have the experience to greatly simplify the transition to state-based taxation in addition to our years of expertise partnering with Oracle and their e-commerce tools including ATG and Oracle Commerce Cloud.
There are many details still yet to be determined since the justices did not outline what types of exceptions states may impose. And we anticipate this subject will be of significant interest to all online retailers for the foreseeable future.
While this ruling paves the path for retailers to account for state taxes, the rate at which this overhead is added will happen state by state. In addition to the custom cloud connectors to industry leading tax processors, Object Edge can also offer personalized consulting to understand if there will be change management needed for internal processes. Let’s start a conversation today.