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When Is the Real Last Minute for Sales Tax Compliance?

Sales Tax DataLINK - Wednesday, November 28, 2018

Have you responded to the Wayfair Supreme Court decision allowing states to require remote sellers to collect sales tax? Chances are good, whether you're a retailer or a manufacturer, that you'll need to register, collect, and remit in all 50 states.

Yet we keep hearing from clients that they're not ready to move on remote sales tax compliance yet.

There are plenty of good reasons for putting it off.

  • Not all states have changed their laws. Utah, for example, is not going to require sales tax compliance from remote sellers until January 1, 2019. This is supposed to give everyone time to get their software in order. (Call us now if you are ready to get your software in order.)
  • While some states have already made changes and more are waiting for the new year, there are also sleeper states that haven't made any changes yet. Waiting till every state has made a decision might help you choose your solution.
  • One of Utah's reasons for holding off till 2019 is to avoid lawsuits. Lawsuits are already springing up, and there will be uncertainties till quite a few states make it through their court cases. Why make expensive changes before you know exactly what's going to happen with the new laws?
  • Q4 is the busiest time for retailers, and it can be hard to think of anything but holiday sales and inventory from Black Friday to New Year's Day.
One of the most popular reasons is simple: "We're waiting for the last minute." Where large companies like Amazon stay ahead of the curve, small and medium companies often wait till the last minute to comply with regulations. When there's uncertainty about the ultimate outcome, waiting till the last minute can be the most cost-effective approach. Delaying the need for new software until the new year keeps you on track with expenses. You might have more information to help you make the best decision. There might even be changes that you can respond to if you wait till the last minute.

When's the real last minute?

About a dozen states have already put their new economic nexus laws into place. If you make sales in these sates, the last minute has already come and gone. Many more will be making changes come January 1. Colorado is switching remote sellers from the use tax rate to the higher sales tax rate, for example.

Take a look at your calendar for the next month or two. Find a day when you can carve out a block of time to compare software solutions, test them, choose one, configure the software, and train your team. When was the last minute to be ready for the new year?

Fortunately, SalesTaxDataLINK can be installed and configured fast -- it doesn't require weeks, as many sales tax solutions do. Our sales tax experts are ready to show you with your own data how smart and intuitive our software is. You can even outsource the whole project to us.

Don't wait any longer. Call us today at (877) 806-7715. The real last minute for sales tax compliance is sooner than you think.