Supreme Court overturns Quill, subjects all internet transactions to sales tax

[BobC]

Originally Posted by Batpig

Just as an FYI since it has been mentioned several times in the thread - 3rd party sales and use tax management already exists. I'm aware of Vertex, and I'm sure there are others.

I'm aware of it and other sales tax management software also but, in this case the trick is, does that software currently interface with a seller's Ebay account so they don't have to go through all the time and effort to gather and keep track of all the sales tax data themselves and enter into the Vertex software by hand to then be able to file and pay all the various state taxes they end up owing? Software like that will not be cheap, and will need to be constantly updated and revised as sales tax laws and rates change over time. And what about if they also sell at shows or have their own site they sell from? Aren't they going to have to record all that data and possible enter it into the tax management software by hand themselves?

Also, that software simply manages the data and information, and may or may not actually be able to prepare and file actual sales tax returns for you in every state, or properly remit the sales taxes in an electronic or other automated manner. And then as was alluded to by some other posters, there is also the matter of having to look at each state you sell in and checking their rules and nexus limits.

And then a seller is going to have to register or license themselves in each and every state they end up being responsible for sales taxes in. The software isn't going to do that for you. And don't forget that all those various states have separate and different rules and rates and you still have to comply with their separate laws, etc. And let's say you decide to take a break and not sell for a while, in most states you're still going to have to file sales tax returns, even if the tax due is $0. And if you decide to quit selling, then you're going to have to formally go and dissolve or terminate your license or registry in all those states so they don;t keep coming after you for sales tax returns and taxes.

Additionally, I'm not so sure Ebay would like to share their source code with someone to write such a program to interface with their software, at least not if they didn't own the software themselves. And as earlier poster previously speculated, figure out a way to then charge for the cost of doing so. Of course, this then may present an added dilemma to Ebay as I pointed out in my previous post in regards to Ebay not wanting to do things that could potentially make them responsible for the sales tax themselves. If they create/sponsor such software, and especially if they charge sellers for its use, they may add to the risk of them being viewed as directly responsible for the sales taxes themselves by the states as well.

And also, by creating/owning/selling/charging for such software, they could become liable for interest and penalties on screw-ups and bad or missed sales tax filings or payments if there are errors or mistakes made by the software, among other things I extremely doubt that Ebay would in any way want to become part of the tax software and compliance business and add that risk and liability to their plate.