Is the path to sales tax simplification achievable and what role will technology play as laws continue to evolve?
ATLANTA, June 20, 2023 /PRNewswire-PRWeb/ -- Global tax provider Sovos today unveiled its analysis of the state of sales and use tax five years removed from the South Dakota v. Wayfair decision. With more than 1,000 sales tax bills consistently being considered by state legislators during the most active months of the year, it further demonstrates the need for states to simplify and organizations to stay ahead of regulatory trends, enforcement and technology.
"It's been five years since the Wayfair decision that enabled states to extend their sales tax collection obligations to sellers based exclusively on economic nexus, but taxpayers are still coming to grips with its effects," said Charles Maniace, vice president of regulatory analysis and design, Sovos. "Sales tax compliance remains complicated. With the recent Senate Finance Hearing, Government Accountability Office report and a smattering of court cases challenging the viability of remote collections, states must take affirmative and meaningful steps to simplify sales tax, ensuring tax laws can be readily complied with by local and remote sellers alike. Failing to act puts critical revenue dollars at risk as states are relying more and more on sales tax to fund their governments."
To commemorate the five-year mark of the Wayfair decision, Sovos is releasing several assets that underline the importance of states and businesses working together to ensure continued compliance of sales tax laws:
- The Case for Sales Tax Simplification: Authored by Maniace, named one of Accounting Today's Top 100 Most Influential People in Accounting the past four years, this white paper reviews what is currently in place for the nation's sales tax. Maniace also dives into what can be done to make things easier for all parties.
- 2023 Sales and Use Tax Dean's List: How exactly have states been doing when it comes to making sales tax simple? This infographic highlights those states that have made the grade by introducing sensible and easy to follow laws while also highlighting a few states that still have room for improvement.
- 50 Unusual Tax Laws: We all know sales tax can be complicated, but in some cases, it can be downright weird. In this eBook, Sovos' regulatory experts rank 50 of the strangest and quirkiest taxes to ever exist.
The Wayfair decision changed sales and use tax forever. Five years removed from this landmark decision, constant evolution reigns. To reach maximum compliance with economic nexus laws, states will need to keep simplifying so that businesses can reasonably meet the standards being imposed. Technology will continue to play an important role as it remains the only way for businesses of any size to stay ahead of the changing tax landscape.
About Sovos
Sovos was built to solve the complexities of the digital transformation of tax, with complete, connected offerings for tax determination, continuous transaction controls, tax reporting and more. Sovos customers include half the Fortune 500, as well as businesses of every size operating in more than 70 countries. The company's SaaS products and proprietary Sovos S1 Platform integrate with a wide variety of business applications and government compliance processes. Sovos has employees throughout the Americas and Europe and is owned by Hg and TA Associates. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.
Media Contact
Amelia Wright, Alloy on behalf of Sovos, (855) 300-8209, sovos@alloycrew.com
SOURCE Sovos
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