Whether you conduct business online or on Main Street, you are likely aware of a bill that has been making its way through Congress- the Marketplace Fairness Act of 2013 (MFA). If it passes, internet and remote sales tax will be a new reality for many businesses. This leaves many businesses wondering, “Does this apply to me?”
Even though you may be doing business in other states, the law may not apply to you, as it does not apply to all businesses. Sales by multi-state online retailers that already have nexus in a state and currently collect sales tax would not be affected. Other organizations that are currently exempt from collecting sales tax and those qualifying for the small seller exemption (currently $1 million dollars in remote sales, but likely to change in final legislation) would not have to collect.
The MFA would only apply to sales by remote sellers that do not currently have nexus in a state, and that are not currently required to charge customers sales tax. Therefore, if you are an online retailer or mail order or catalog retailer that does not currently do so, you would have to collect sales tax according to the statutes in the state where the product or service is being delivered.
The passing of the MFA would give states the authority to make remote businesses calculate, collect and remit sales tax, some as early as 180 days after the bill’s passage. The fate of the bill currently lies in the hand of the House of Representatives, and some believe that the law could go into effect within the next 12 months, if passed.
If you are a remote seller who is anxiously standing by, wondering how this might affect you, you are not alone. For more information on the current state of the MFA legislation and how it may impact your business, join our partner Avalara (the sales tax experts) on Thursday, June 13th at 1PM EST for an informational webinar: “
You can also visit this site:
By Anya Ciecierski, CAL Business Solutions, Microsoft Dynamics GP Partner Connecticut,