Supreme Court Ruling - Collecting Sales Tax for the Buyer's location
Anyone figure out how to get your GoDaddy store to comply with the Supreme Court ruling on June 1, 2018 South Dakota Vs Wayfair - states that all ecommerce sellers in the US must collect and pay state and local taxes for the BUYERS location. This means that when someone places an order, the checkout screen must have the technical capability to calculate the correct tax for that Buyer's address. Amazon.com calculates buyers location taxes and has for quite some time. Easy if the platform has the tax tables in the back that tie into the checkout screen. Seamless, accurate, and timely.
I've called into Go Daddy support 4 times and no one has been able to give me an answer. So to comply with this Supreme Court ruling, I guess I cannot sell on the Go Daddy standard store. I paid around $5,000 for this site they designed, sucks if its not one I can use going forward.
The support team has told me I can enter all the tax rates in manually. Ha! Minnesota alone has 20 different tax rates based on 25,292 different zip codes.
Here is the link they keep sending me as to set up the tax rates. But you will see, it doesn't allow you to put it down to the zip code level as required by federal law.
Re: Supreme Court Ruling - Collecting Sales Tax for the Buyer's location
It's not a new federal law, rather the overturning of a previous restriction from states to collect sales tax from entities without physical presence in that state. The rules, procedures, and enforcement are up to the individual states. With South Dakota there is a small-business exemption where only entities with over $100,000 sales or 200 transactions in that state in a given year would be liable. It is still up to the buyer to track and submit taxes for transactions with sellers who are not required to collect sales tax.
I believe Amazon.com already has physical presence in all or most states, they were already collecting and submitting sales tax for their own transactions. They already had the system in place and there is a business interest for Amazon to require it of partners who sell on their platform too.
This case was over requesting a few select high-volume online retailers to submit sales taxes. If you do significant sales volume in another state for which you're not currently collecting sales tax I would recommend consulting a tax professional that specializes in eCommerce. Though for the most part this is a preliminary step, it'll take time for all the specifics to be worked out.