United States

December Roundup: Sales tax laws you need to know

While you focus on your business, we stay on top of legislative and policy changes that can affect your sales tax compliance.

Tax news highlights from December include new compliance guidelines for remote sellers and marketplaces in Illinois, and final preparations for Brexit and the new U.K. ecommerce package. Read on for more details.

 

2021 sales tax changes report examines business and tax trends for the new year.

The COVID-19 pandemic has affected how we learn, shop, socialize, travel, and work. That, in turn, is influencing tax policy. Learn more.

 

Avalara tracks shifts in consumer spending and economic performance.

2020 saw rapid ecommerce acceleration and widespread adoption of at-home subscriptions. Learn more.

 

Illinois extends economic nexus law to out-of-state wineries.

Since it took effect October 1, 2018, the state’s economic nexus law hasn’t applied to out-of-state wineries shipping directly to consumers (DTC) in Illinois. As of January 1, 2021, it will. Learn more.

 

Illinois updates requirements for out-of-state sellers and marketplaces.

Beginning January 1, 2021, most remote sellers with an obligation to collect sales tax in Illinois are required to collect local tax in addition to state tax. Collection requirements for marketplace facilitators are also changing. Learn more.

 

Kentucky allows out-of-state producers of beer, spirits, and wines to ship DTC in the state.

The last hurdle blocking out-of-state wineries and other alcohol producers from shipping DTC in Kentucky has been overcome. Learn more.

 

Many sales tax rate changes take effect January 1, 2021.

The start of each new year usually brings a slew of tax rate changes. Although much has changed this year, this tradition holds true. Learn more.

 

More states move toward taxing digital goods and services.

State tax laws regarding digital products are remarkably nuanced. To help you navigate them, we’ve updated our state-by-state guide. Learn more.

 

New 988 national suicide prevention hotline sets stage for new regulatory fees.

In nationalizing the hotline, federal authorities lay the groundwork for regulatory fees. States now have the authority to collect fees from voice providers, as many regions do to finance 911. Learn more.

 

New work-from-home policies create communications tax complexity for managed service providers.

Across the U.S., governing bodies are working to determine which services should fall under the category of “communications services,” and how to tax them accordingly. Learn more.

 

Pandemic exacerbates returns process.

Consumers may refrain from purchasing items online simply to avoid the possibility of having to deal with returns. Learn more.

 

U.K. braces for Brexit.

Starting January 1, 2021, most U.S. businesses shipping into the U.K. will have to register for VAT and charge and collect U.K. sales VAT at checkout. Unregistered sellers risk having shipments stopped by the U.K. border control authorities. Learn more.

 

Tired of trying to keep up with sales tax and other tax changes across the country and around the world? Automating tax compliance can help.

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