What the US Wayfair ruling means for Europe | Vertex Exchange Europe 2019

Ellen Van Daal explains how different US states are reacting to the Wayfair ruling

September 9, 2019

Tax technology specialists Vertex brought together tax professionals, solution experts, and its customers in Munich for its Vertex Exchange Europe event. World Finance interviewed half a dozen delegates for an update on Europe’s latest tax compliant challenges and technological advancements: you can watch them all in our Tax Automation with Vertex playlist on Youtube.

Ellen Van Daal: So, Wayfair is a decision by the US Supreme Court, overruling the latest regulations in terms of having Nexus, and taxing companies in the different states in the US.

Before the Wayfair decision, you needed to have a physical presence in each of the states to file your tax returns, and pay taxes. With the Wayfair decision it means doing business in the US, selling to the different states, already means you have Nexus – and thus pay taxes. So European businesses will have filing obligations in each of the states within the US.

The decision was last year, and now all the different states are implementing their own rules. So you have different thresholds in each of the states within the US to comply with tax registrations. So you need to monitor very closely every different state within the US, what are the thresholds, when are they applying it. So you need to monitor it very closely.

So Vertex has the content, so automating your tax processes with Vertex means Vertex will offer you the content. So if there’s a member state that is applying the different thresholds, or has set out their rules and regulations, Vertex will automatically update their content – so it means that you’re already up to date, there’s no need for you to do anything, other than the tax registration within the state.