Leap the Pond Blog

Wednesday Wisdom: The Future of Sales Tax in the Wake of the South Dakota vs. Wayfair, Inc. ruling

A few weeks ago the United States Supreme Court issued the long awaited ruling on South Dakota v. Wayfair, Inc. South Dakota can require internet retailers to collect sales tax on purchases by South Dakota buyers, even if the retailer lacks a physical presence in the state. Naturally, there are a lot of questions about what the landmark ruling might mean for our customers.


Avalara, Sage Intacct’s leading marketplace partner for Sales Tax compliance, aims to answers a lot of these questions in the following document:

Key Takeaways:
  • South Dakota has not stated when the new law will go into effect.

  • When it does, South Dakota will expand its authority to impose tax collections on remote sellers via its economic nexus rule.

  • These remote sellers are not currently registered with the state, but should their gross revenue of tangible personal property or electronically delivered products or services into the state exceed $100,000 or 200 or more separate transactions in the previous or current calendar year, they will be obligated to collect and remit South Dakota state sales tax.

  • The new authority does not change what is considered tax exempt.

  • Services, as well as tangible products, are taxable sales.

  • The ruling does not affect any company already registered and collecting sales taxes in South Dakota.

  • A physical presence within South Dakota still obligates the company to collect and remit South Dakota sales taxes.

  • Remote sellers to South Dakota should work directly with their State and Local Tax CPA advisor to help them prepare for the new nexus requirements.

  • Other states imposing economic nexus rules that are similar to South Dakota’s include:

    • Alabama

    • Connecticut

    • Georgia

    • Hawaii

    • Iowa

    • Illinois

    • Indiana

    • Kentucky

    • Louisiana

    • Massachusetts

    • Maine

    • Missouri

    • North Dakota

    • Ohio

    • Pennsylvania

    • Rhode Island

    • Tennessee

    • Virginia

    • Washington

    • Wyoming

For more information please refer to Avalara's resource page.

About Avalara:

Avalara helps businesses get tax compliance right. Avalara’s customers face demanding tax obligations imposed by state, local, and other taxing authorities around the world, and rely on Avalara to provide efficient and accurate solutions to manage those requirements. The company provides solutions for various transactional taxes, including sales and use, VAT, excise, communications, and others. Each year, Avalara serves customers by processing billions of tax transactions, filing more than a million transaction tax returns, and managing millions of tax exemption certificates and other compliance documents.

We work tirelessly with Sage Intacct Marketplace Partners to bring you educational-based product information to help maximize your Sage Intacct environment.

Please note that this is in no way an endorsement or solicitation of Avalara. They are just one of the many marketplace solutions that integrate with Sage Intacct. For a full listing of solutions, please visit the Sage Intacct Marketplace >

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