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| December 2018 |
| Are you selling to U.S. customers? What the Wayfair decision means to Canadian Companies |
| Darlene Shaw, CPA, CA, CPA (Illinois), is a tax partner in the Halifax office of Collins Barrow |
| The recent ruling of the Supreme Court of the United States in South Dakota v. Wayfair, Inc., while receiving little coverage here in Canada, may have a substantial impact on how Canadian companies do business in the United States. In what may be a game changer for online retailers, the ruling has opened the door for individual states to enforce sales tax collection on sales shipped into their state, even where the seller has no physical presence. The Supreme Court overturned decades of judicial precedents and confirmed that physical nexus is no longer required for a state to enforce sales tax collection; rather, the concept of economic nexus should be considered as a reasonable basis. |
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| Collins Barrow periodically publishes Tax Alert for its clients and associates. It is designed to highlight and summarize the continually changing tax and business scene across Canada. While Tax Alert may suggest general planning ideas, we recommend professional advice always be sought before taking specific planning steps. |
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