Wayfair for Foreign Companies – Cross-Border U.S. Sales and Use Tax

• Define and differentiate between sales tax and use tax.
• Identify key stakeholders involved in sales and use tax transactions.
• Explain the general structure and administration of U.S. sales and use tax systems.

• Summarize the landmark South Dakota v. Wayfair Supreme Court decision and its significance for foreign companies.
• Discuss the concept of economic nexus and its role in determining tax obligations.

• Define economic nexus criteria for sales and use tax in various U.S. states.
• Analyze how foreign companies establish economic nexus and determine their tax obligations.

• Explore different scenarios involving cross-border sales and transactions.
• Determine when foreign companies are required to collect and remit U.S. sales tax.

• Identify best practices for foreign companies to register, collect, and remit sales and use tax.
• Understand potential registration, reporting, and filing requirements in various states.

• Recognize situations where sales and use tax exemptions may apply to foreign companies.
• Understand special circumstances, such as drop shipping and temporary sales, and their impact on tax liabilities.

7. Address Potential Double Taxation Issues:

• Explore strategies to mitigate the risk of double taxation for foreign companies.
• Understand methods to obtain refunds or credits for overpaid taxes.

8. Manage Record keeping and Reporting:

• Explain the importance of maintaining accurate records for sales and use tax purposes.
• Develop effective record keeping and reporting procedures to meet compliance requirements.

9. Implement Technology Solutions for Compliance:

• Discuss available software and technology tools for calculating and tracking sales and use tax liabilities.
• Evaluate the benefits of automation in managing tax obligations.

10. Navigate Audits and Dispute Resolution:

• Prepare for potential sales and use tax audits by U.S. tax authorities.
• Understand the audit process, rights, and responsibilities of foreign companies.
• Explore strategies for resolving disputes related to tax assessments.

11. Stay Current with Evolving Regulations:

• Explain the importance of staying updated on changes in U.S. sales and use tax laws.
• Identify resources for continuous learning and monitoring of regulatory updates.