Michael Cullers and Robert O’Hare (Squire Patton Boggs) examine a US Supreme Court decision that could have far-reaching ramifications for international entities carrying on business in the US.
The Supreme Court of the United States (the court) handed down its decision in South Dakota v Wayfair Inc. (2018) 585 US (Wayfair) on 21 June 2018.
Wayfair concerned a challenge to a South Dakota law requiring a retailer which has no physical presence in the state to collect sales tax from its South Dakota consumers ‘as if the seller had a physical presence in the State’. In the absence of the law South Dakota would have had to rely on its resident consumers paying the tax on purchases from out-of-state sellers themselves. As the court noted compliance rates were unsurprisingly low.
The law however appeared to flout a constitutional principle that a state may not...
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Michael Cullers and Robert O’Hare (Squire Patton Boggs) examine a US Supreme Court decision that could have far-reaching ramifications for international entities carrying on business in the US.
The Supreme Court of the United States (the court) handed down its decision in South Dakota v Wayfair Inc. (2018) 585 US (Wayfair) on 21 June 2018.
Wayfair concerned a challenge to a South Dakota law requiring a retailer which has no physical presence in the state to collect sales tax from its South Dakota consumers ‘as if the seller had a physical presence in the State’. In the absence of the law South Dakota would have had to rely on its resident consumers paying the tax on purchases from out-of-state sellers themselves. As the court noted compliance rates were unsurprisingly low.
The law however appeared to flout a constitutional principle that a state may not...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
