• Intacct Blog: What the Online Sales Tax Bill Means for Your Business
  • What the Online Sales Tax Bill Means for Your Business

    This week the Senate passed The Marketplace Fairness Act of 2013 (MFA), a bill that could radically alter sales tax obligations for your business if you sell into states where you don’t currently have the obligation to collect and remit sales tax. Earlier this week, Intacct partner Avalara announced a new resource to help small and medium-sized businesses understand what these changes could mean to them. Here is a quick snapshot.

    MFA: The Basics
    In its current form, the MFA would grant states the power to require remote sellers to collect sales tax, even in those states where they don’t have a physical presence, such as a distribution center or data center.

    To exercise this authority, states will have to meet certain tax code requirements. If the bill becomes law, many states could meet these requirements and start making remote sellers collect as soon as 180 days after the bill passes. [See interactive map of when states could implement MFA.]

    Which Businesses Would Be Affected? 
    If you are a remote seller, whether you make sales online, over the phone, or via catalog, you might have to start collecting sales tax in states where you aren't currently required to do so. However, there is an exception for businesses that make less than $1,000,000 in total remote sales per calendar year.

    Note: this does not apply to organizations that are considered exempt, such as religious, educational, or charitable organizations.

    To learn more about the Marketplace Fairness Act, how it might impact your business, and what you can do to get ready, be sure to visit http://salestaxchanges.com/. To learn more about handling sales tax management within Intacct, click here.

    Be sure to follow Intacct on all our social media channels, including Facebook, Twitter, and LinkedIn. To network with other people interested in cloud financial applications, be sure to join the Intacct Cloud Accounting group and the CFOInsights group on LinkedIn.

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    Media Contacts

    Peter Olson Director of Corporate Communications 408-878-0951 | polson [@] intacct.com Twitter: @Intacct_Peter
    Brittany Benson Senior Corporate Communications Manager 408-620-3938 | bbenson [@] intacct.com Twitter: @brittanybbenson