The United States Supreme Court ruled in South Dakota v. Wayfair, Inc. that states can require out-of-state sellers to collect and remit sales tax on sales even if the seller has no physical presence in the state. This decision overruled previous precedent.
Tax-Exempt Entities and Exemptions
Customers that are tax-exempt entities can buy certain goods and services sales tax-free if they provide their certificate at purchase. Examples are non-profits, government agencies, schools, and religious groups.
Specific requirements vary across states, but laws provide an exemption for businesses under a sales or transactions threshold. Apply for tax-exempt status to unlock sales tax exemptions at checkout if valid documents are provided.
Compliance and Support
In the wake of the Wayfair case, every state with a general sales tax enacted a law requiring out-of-state sellers over certain limits to collect and remit tax. The ruling focused on sellers of physical goods but impact is expected on digital businesses too. Companies must follow evolving regulations as courts decide how taxes apply.
Many states assist sellers in starting collection. Resources like the Streamlined Sales Tax Project aid registration and collection. Selling through marketplaces brings additional laws to follow. The National Retail Federation gathers details to help.
Wayfair’s Shipping Rates
At Wayfair, free shipping applies on orders over $35. Under that, a $4.99 flat rate applies. Delivery options display per item with the ability to choose at checkout. Cost and "Free Shipping" indicate eligibility.