Compliance Challenge: The Supreme Court’s 2018 Ruling on Online Sales Tax


On June 21, the Supreme Court ruled in favor of states requiring online retailers to collect sales taxes. The 5-to-4 decision will have an immediate impact on American consumers, large online retailers, and, of course, small e-commerce businesses like yours.

“Financially, I couldn’t afford it,” said an online gift shop owner in Montana to NBC Nightly News. “That’s like putting me on the same level playing field with large corporations who have multiple locations and in-house legal and in-house accounting firms.”

Some big retailers like Walmart have physical stores in all 50 states, so they already charge sales tax because of the physical presence rule. Startups in high-growth mode? Not so much. Local tax laws can be very different across the United States with over 10,000 local tax jurisdictions.

Luckily, our friends at TaxJar are standing by with information on the ruling and answers to your most pressing sales tax-related questions.

Still have questions? There’s also a webinar.

Please note: This blog is for informational purposes only. Be advised that sales tax rules and laws are subject to change at any time. For specific sales tax advice regarding your business, contact a sales tax expert.