Canadian companies doing business in the U.S. will have to meet states’ sales tax laws.
Canadian companies doing business in the United States will soon have to meet expanded requirements of U.S. states' sales tax laws, due to the decision in a recent U.S. Supreme Court case. In South Dakota v. Wayfair, the Court overturned a previous decision and, as a result, Canadian taxpayers, as well as other out-of-state taxpayers, that make sales in U.S. states must meet these states' individual sales tax collection, compliance and documentation rules even if they do not have a physical presence in the state. Previously, only taxpayers with a physical presence in those states were subject to those states' sales tax laws.
As a result of this decision, which was released on June 21, 2018, Canadian taxpayers should prepare to comply with any additional state sales tax obligations. This may mean making significant changes to meet new collection, compliance and documentation requirements in more than 7,000 U.S. jurisdictions.
Download this edition of the TaxNewsFlash to learn more.
© 2019 KPMG LLP, a Canada limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.