As 2025 winds to a close, we at Sovos ShipCompliant look back at all that happened and changed for the dynamic industry we serve. Indeed, 2025 proved to be an eventful year for the direct-to-consumer (DtC) shipping market and the beverage alcohol industry writ large.
Beyond these more proximate developments, 2025 also saw the twentieth anniversary of both the Granholm v. Heald Supreme Court ruling, which ushered in the modern direct-to-consumer (DtC) wine shipping market, along with the founding of Sovos ShipCompliant.
Twenty years can be a long time for market, and it has been our absolute privilege to work alongside so many fantastic wineries and the other support services, like fulfillment houses, POS, and ecommerce platforms, and our other integrated partners, that have helped to grow the DtC wine shipping into a multibillion-dollar annual market.
There was nothing guaranteed about this success in 2005 and so we also honor the many incredible people who have built Sovos ShipCompliant along with all those who made the DtC shipping market into what it is, from organizations like Wine Institute and Free the Grapes!, to the consumers who were moved to lobby their representatives, and of course, the amazing winemakers and suppliers that strive daily to make the world a little better by providing consumers with fantastic wines to enjoy with family and friends.
Still, time marches on, bringing new and changed concerns to manage, and the beverage alcohol industry is not immune. So, while we can reflect on all we have accomplished over the last 20 years, this moment is also a time to review all that happened for DtC wine in 2025.
The biggest news from 2025 was the enactment of three separate state laws enabling new DtC wine shipping permissions.
Over the year, Arkansas, Mississippi, and Delaware all passed laws designed to provide their residents with greater access to the national wine market. With these new laws in place, that leaves Utah as the only state without any form of DtC shipping rules on its books (and Rhode Island as the only state that requires an onsite sale prior to shipping).
Of course, just because DtC shipping laws are in place in these states doesn’t mean there aren’t restrictions and limitations—some of them severe—on wineries servicing consumers there.
Arkansas prohibits DtC shipping into any dry region of the state, which, with 53 dry or mixed counties, restricts much of the state.
Mississippi doesn’t permit DtC shipping of any wines that are listed for distribution through the state control system, effectively blocking wineries from engaging in concurrent DtC and wholesale sales in the state.
Delaware’s new law includes the most onerous restrictions, including:
Indeed, in its current form, Delaware’s law is so restrictive that it is not recommended for any winery to pursue shipping there when the law takes effect in 2026.
Maine extended its container redemption program to DtC shipped wines, effective on July 1. This new requirement has proved to be an extreme burden on wineries as many have found it nearly impossible to comply with the registration requirements.
While there are perfectly legitimate reasons for states to look at extending their bottle bill requirements to remote shippers, the states must make these programs accessible and readily manageable for everyone.
Wine was not the only product type affected by state law changes this year, as California (finally!) enacted a Granholm-compliant DtC shipping law for distilled spirits.
The state had been operating for several years under a “temporary” law that permitted California-based distilleries only to DtC ship, for which it was at great risk of litigation. As such, the new law, which makes DtC shipping available to all U.S. distilleries equivalent in size to California craft distilleries (150,000-gallon annual production cap), is extremely welcome. Less welcome, though, is the one-year term for the new law, which will need to be renewed by the state to extend past December 31, 2026.
2025 was also a rather complicated year at the federal level, due to:
Looking at the overall beverage alcohol market, things were still challenging in 2025 with many analysts noting broad declines in consumption across all product types and consumer groups. Even more voguish products, like RTD cocktails and seltzers, have been performing less robustly than they had recently.
For the DtC wine shipping market, 2025 has generally seen declines in shipping volume and value continuing at a similar rate as the last two years. While some of this might still be attributed to a return to normal from the heady years of the pandemic shutdown, it is undeniable that the DtC wine shipping is facing an extended downturn. Even if the decline in shipments parallels the broader struggles of the wine and alcohol markets, it is little comfort to wineries looking for a return to growth. There are some signs that the 2025 holiday shipping season may be surprisingly robust, which may signal things could level out in 2026, though no one is holding their breath.
Over the last 20 years, we at Sovos ShipCompliant have had the privilege of becoming a key member of the DtC wine shipping market and the beverage alcohol industry writ large. Through the years, we have seen a great deal of change, largely for the better, with greater access and availability to the tremendous number of delicious beverages produced and sold in this country. As we look back at all of the good we have seen and been part of, we will raise our glasses to many more years of supporting this exciting market.
Arkansas, Mississippi, and Delaware passed new laws, while Maine added container redemption requirements, and California updated distilled spirits shipping rules.
All states except Utah permit some form of DtC wine shipping; Rhode Island requires onsite purchase before shipping.
Tariffs were imposed and removed multiple times, creating uncertainty and operational challenges.
Signs suggest stabilization of the DtC wine market, but growth will depend on consumer demand.
Indiana imposes a statewide sales and use tax rate of 7%. The state does not allow local jurisdictions to levy additional sales taxes. Keeping track of the sales tax rate in Indiana and all other states is essential for businesses.
Indiana sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state. Businesses should also understand how Indiana use tax applies to out-of-state purchases used within Indiana.
Examples of taxable items and services include:
A seller is liable to collect and remit Indiana sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Indiana.
Indiana enforces economic nexus for remote sellers. If your business has:
you may be required to register for and collect Indiana sales tax.
Certain sales in Indiana are considered generally exempt from the sales and use tax requirements.
Additionally, Indiana exempts sales to certain entities from the sales/use tax, including the following:
To claim an exemption, an entity must provide an exemption certificate with the sale. The Indiana Department of Revenue accepts Form ST-105 as the most commonly used form.
Indiana offers multiple methods for filing and remitting sales and use tax:
There is an electronic filing mandate for all licensed sellers in the state, so it is important to know about the Indiana sales tax online system. The state provides instructions for electronically filing sales taxes through INTIME (see ST-103 Instructions here).
Yes, Indiana is part of the Streamlined Sales Tax (SST) initiative, a multi-state agreement designed to simplify and standardize sales tax rules.
No, Indiana does not currently offer sales tax holidays.
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Indiana imposes the following point of sale fees:
Generally, Indiana does apply sales tax to shipping charges.
Indiana is destination based.
Yes. Indiana accepts Simplified Electronic Returns (SER) from any seller or tax provider that can transmit the return properly. You don’t need to be in the SST Model 1 program to use the SER—providers like Sovos can file on behalf of any client who opts into that method.
Indiana businesses or individuals selling tangible personal property or certain services to Indiana consumers may need to register to collect sales tax when meeting qualifying requirements. Registrations may be completed online through the InBiz website. Once approved, Indiana will issue a Registered Retail Merchant Certificate to the applicant, and they may begin collecting/remitting sales taxes. More information may be found here.
For more information on U.S. sales tax compliance across all 50 states, check out our:
State-by-State Sales Tax Guide
Looking for an easier way to manage sales tax in Indiana and beyond? Learn how Sovos simplifies compliance and helps you stay aligned with Indiana tax laws.
Massachusetts imposes a statewide sales and use tax rate of 6.25%. The state does not allow local jurisdictions to levy additional sales taxes.
Massachusetts sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Examples of taxable items include:
A seller is liable to collect and remit Massachusetts sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Massachusetts.
Massachusetts enforces economic nexus for remote sellers. If your business has:
you are required to register for and collect Massachusetts sales tax.
Learn more on the [Massachusetts Remote Seller and Marketplace Facilitator FAQ page].
Massachusetts Sales Tax Exemptions
Certain sales in Massachusetts are considered generally exempt from the sales and use tax requirements.
Additionally, Massachusetts exempts sales to certain entities from the sales/use tax, including the following:
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts Form ST-4: Sales Tax Resale Certificate as the most commonly used form.
Additional exemption certificate formats can be found on the MA DOR Sales and Use Tax Forms page.
Massachusetts offers multiple methods for filing and remitting sales and use tax:
Massachusetts requires that taxpayers with over $150,000 in cumulative tax liability in the prior year will be required to make advance payments. To learn more, visit New Advance Payment Requirement for Vendors and Operators in G.L. c. 62C, § 16B.
Yes, Massachusetts does offer a sales tax holiday.
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Massachusetts imposes point-of-sale bottle deposit and local bag fees.
Generally, separately stated shipping charges are excluded from the taxable sales price of goods.
Massachusetts is a destination-based state.
Sales Tax Return Due Dates are dependent on the amount of sales or use tax collected.
The Massachusetts use tax is 6.25% of the sales price or rental charge on tangible personal property (including phone and mail order items or items purchased over the Internet, and electronically transferred software) or certain telecommunications services:
Massachusetts businesses or individuals selling tangible personal property or certain services to Massachusetts consumers may need register to collect sales tax when meeting qualifying requirements. More information may be found here.
For more information on U.S. sales tax compliance across all 50 states, check out our:
Looking for an easier way to manage sales tax in [State] and beyond? Learn how Sovos simplifies compliance.
Minnesota imposes a statewide sales and use tax of 8.75%. The state allows local jurisdictions to levy an additional sales tax.
Minnesota sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Examples of taxable items include:
A seller is liable to collect and remit Minnesota sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence. Meeting these thresholds means you must register and comply with Minnesota sales tax laws.
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Minnesota.
Minnesota enforces economic nexus for remote sellers. If your business has:
you may be required to register for and collect sales tax in Minnesota.
Certain sales in Minnesota are considered generally exempt from the sales and use tax requirements.
Additionally, Minnesota exempts sales to certain entities from the sales/use tax, including the following:
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts Form ST3 – Certificate of Exemption as the most commonly used form.
Minnesota offers electronic filing options for remitting sales and use tax, including:
You must generally pay all Minnesota business taxes electronically if you paid more than $10,000 of any one business tax during the previous fiscal year (July 1 – June 30).
If you’re required to pay business taxes electronically for one year, you must continue to do so for all future years. Minnesota will send a notice the first year you’re required to pay electronically.
Yes, Minnesota is part of the SST initiative, a multi-state agreement designed to simplify and standardize sales tax rules.
Currently, there are no sales tax holidays in Minnesota.
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Minnesota imposes the following point of sale fees:
Generally, Minnesota taxes delivery charges if the underlying item is taxable.
Minnesota is a destination-based state, meaning sales tax is calculated based on the buyer’s location
Yes. Minnesota accepts Simplified Electronic Returns (SER) from any seller or tax provider that can transmit the return properly. You don’t need to be in the SST Model 1 program to use the SER—providers like Sovos can file on behalf of any client who opts into that method.
Minnesota businesses or individuals selling tangible personal property or certain services to Minnesota consumers may need to register to collect sales tax when meeting qualifying requirements. More information may be found here: Starting a Business or MN e-Services
Pennsylvania imposes a statewide sales and use tax rate of 6%. The state allows local jurisdictions to levy additional sales taxes (specifically Allegheny County and City of Philadelphia). Staying compliant with Pennsylvania sales tax laws is essential for any business operating in the state. These laws define what goods and services are taxable, set the nexus standards, and outline exemption criteria.
Pennsylvania sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Examples of taxable items include:
Pennsylvania sales tax for businesses applies when a seller meets the state’s nexus requirements, which can be satisfied by having either a physical or economic presence.
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Pennsylvania.
Pennsylvania enforces economic nexus for remote sellers. If your business has:
you may be required to register for and collect Pennsylvania sales tax.
Certain products and services qualify for a Pennsylvania sales tax exemption, including most clothing, food, and sales to nonprofit organizations.
Additionally, Pennsylvania exempts sales to certain entities from the sales/use tax, including the following:
o 501(c)(3) organizations
o Churches and houses of religious worship
o Nonprofit schools, hospitals and homes for children and aged persons
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts Form Rev-1220 as the most commonly used form. Additional guidance on acceptable exemption formats can be found in Sales Tax Exemption Application – FORM REV-72
Businesses must use the following Pennsylvania sales tax forms for filing:
Businesses required to make prepayments for sales, use and hotel occupancy tax by the 20th of each month and having an actual tax liability for the third quarter of the previous year of at least $25,000 but less than $100,000, now have two prepayment calculation options. The additional calculation option will allow businesses to adapt to monthly sales fluctuations while remaining compliant with the prepayment obligation. Businesses with an actual tax liability of $100,000 or more for the third quarter of the previous year cannot use the alternate calculation method.
Currently, there are no Pennsylvania sales tax holidays, so all qualifying sales remain subject to tax throughout the year.
Online retailers with nexus who sell taxable goods into Pennsylvania must collect sales tax based on the applicable rate at the location where goods are shipped.
Businesses with physical or economic nexus who make taxable sales in Pennsylvania are required to collect and remit Pennsylvania sales tax.
The current sales tax rate in Pennsylvania is 6%.
Pennsylvania businesses or individuals selling tangible personal property or certain services to Pennsylvania consumers may need to register to collect sales tax when meeting qualifying requirements.
Yes, Pennsylvania sales tax online filing can be submitted on Pennsylvania (My Path).
For more information on U.S. sales tax compliance across all 50 states, check out our:
Looking for an easier way to manage sales tax in Pennsylvania and beyond? Learn how Sovos simplifies compliance.
The Idaho state sales tax rate is 6%. The state allows local jurisdictions to levy additional sales taxes.
Idaho sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Examples of taxable items include:
Yes, Idaho state sales and use tax applies to groceries. However, there are local exemptions for groceries in Ketchum, Lava Hot Springs, McCall, and Harrison.
A seller is liable to collect and remit Idaho sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence. Marketplace facilitators also have collection obligations under Idaho sales tax laws.
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Idaho.
Idaho enforces economic nexus for remote sellers. If your business has:
you may be required to register for and collect Idaho sales tax.
Learn more at How Does the Idaho Economic Nexus Work?
Yes, when sellers meet the economic nexus threshold listed above, their online sales to Idaho residents require sales tax.
Certain transactions are exempt from Idaho state sales tax. Idaho tax exemptions include:
Additionally, Idaho exempts sales to certain entities from the sales/use tax, including the following:
To claim an exemption, an entity must provide an exemption certificate with the sale. The Idaho State Tax Commission accepts Form ST-101 as the most commonly used form.
Idaho offers multiple methods for filing and remitting sales and use tax:
No, Idaho is not part of SST.
No, Idaho does not currently offer sales tax holidays.
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Idaho imposes an E911 fee.
Idaho businesses or individuals selling tangible personal property or certain services to Idaho consumers may need register to collect sales tax when meeting qualifying requirements. To register for a regular seller’s permit in Idaho, a business must submit an online Idaho Business Registration application. Failure to comply can result in penalties and interest, so sales tax compliance in Idaho is critical for businesses of all sizes.
Idaho applies a 6% sales tax on vehicle purchases.
Effective January 2026, California is fully opening its doors to direct-to-consumer (DtC) shipping of distilled spirits. Until recently, only distillers located within California were permitted to ship spirits directly to residents. This policy originated after the widespread shutdowns in 2020, which prompted temporary measures to support local businesses. The law allowing in-state direct-to-consumer shipping was extended annually until a legal challenge, referencing the Granholm ruling, questioning its fairness.
In November of 2025, we hosted a webinar featuring Michael Walker on behalf of the American Craft Spirits Association (ACSA) , featuring a deep dive on everything that distillers needed to know before shipping to California.
The state’s one-year pilot program, effective January 1, 2026, opens the door for both in-state and out-of-state craft distillers to ship directly to consumers, provided they meet strict compliance requirements. This shift not only expands market access but also signals potential trends for other states to follow.
With the passing of AB 1246, California’s DtC spirits shipping laws have undergone significant updates. Here’s what producers need to know.
Navigating alcohol shipping compliance in California, like in all states, requires attention to detail.
The pilot program is currently scheduled to end on December 31, 2026. While it’s uncertain whether lawmakers will extend or make the program permanent, history suggests there’s a precedent for renewal. Our annual Direct-to-Consumer Spirits Shipping Report, produced in collaboration with the ACSA, consistently demonstrates that consumers want increased access to spirits. The repeated extensions of California’s in-state shipping laws further illustrate that support from both consumers and lawmakers can drive meaningful change.
Yes, starting January 1, 2026, both in-state and out-of-state craft distillers can ship spirits directly to California consumers, provided they obtain the required license and comply with all regulations.
To DtC ship spirits into and within California, you will need a Type 94 license.
Yes, there is a 2.25 liter per person per day volume limit for DtC spirits shipments in California.
Shippers must register as both manufacturers and retailers, collect and remit bottle deposits, and file regular tax and compliance reports with California agencies.
Yes, as long as the distillery meets California’s definition of craft distillery and secures the appropriate licenses, out-of-state distilleries can DtC ship to California residents effective January 1, 2026.
Non-compliance can result in fines, loss of licenses, and enforcement actions from state and federal agencies. Compliance failures may also impact other production licenses and future business opportunities.
Colorado imposes a statewide sales and use tax rate of 2.9%.
Examples of taxable items include:
Like many states, localities in Colorado can impose taxes which may vary in application and rate.
Colorado sales and use tax applies to the sale of tangible personal property, and services are generally exempt. Examples of exempt products and services include:
Additionally, Colorado exempts sales to certain entities from the sales/use tax, including the following:
A seller is liable to collect and remit Colorado sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence. Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Colorado.
Colorado enforces economic nexus for remote sellers. If your business has:
Colorado offers multiple methods for filing and remitting sales and use tax:
Businesses with more than $75,000 annual liability in Colorado are required to pay sales tax online by Electronic Funds Transfer on a monthly basis.
Businesses or individuals selling tangible personal property or certain services to Colorado consumers may need to register to collect sales tax when meeting qualifying requirements. To register, submit a completed CR-0100 application form to the Colorado Department of Revenue. The license permits sellers to collect state administered sales and use taxes. Additional registration may be required at the local level if your business has substantial connection to a home-rule city that imposes a sales and use tax.
Colorado created the Sales and Use Tax System (SUTS) in 2017, providing a statewide local filing portal, sales tax lookup tool and a robust tax matrix. The system is currently available for businesses with retail sales of over $100,000 per year and has around 50 participating locals. Given the number of home-rule cities in Colorado, each with their own sales tax return and filing requirements, this is an incredibly helpful tool.
Staying compliant with Colorado’s complex sales tax rules requires careful attention to state and local regulations. From understanding exemptions to meeting nexus thresholds and filing requirements, businesses must stay proactive to avoid costly mistakes.
Colorado state sales tax is calculated on the full purchase price.
Any retailer making sales in Colorado must collect the applicable state sales taxes.
Most services are exempt from Colorado sales tax. Some food products, agricultural items, metal bullions and feminine hygiene products are also exempt.
Filing frequency is determined by the amount of sales tax collected monthly.
Businesses have the option to utilize Revenue Online to file sales tax returns online.
The penalty for late Colorado sales tax payments is the greater of $15 or 10% of the fee due plus 0.5% for each month the fee remains unpaid not to exceed a total of 18%.
Understanding sales tax in Virginia is essential for any business operating in or selling into the state. Virginia state sales tax is governed by clearly defined statutes and filing requirements, making it important for sellers to stay compliant with Virginia sales tax law and ongoing administrative guidance.
Virginia imposes a statewide sales and use tax rate of 4.3%. Localities may also levy a local option tax in addition to the state rate. Localities may also levy additional local option taxes on top of the state rate, creating combined rates that vary by jurisdiction. Businesses should ensure accurate Virginia sales tax calculation at the point of sale to avoid under- or over-collection.
Under Virginia sales tax rules, sales and use tax applies to tangible personal property and certain enumerated services. Sellers must collect and remit tax when selling taxable goods or services to Virginia customers.
Examples of taxable items include:
A seller is liable to collect and remit Virginia sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Virginia.
Virginia enforces economic nexus for remote sellers. If your business has:
Certain sales in Virginia are considered generally exempt from the sales and use tax requirements.
Additionally, Virginia exempts sales to certain entities from the sales/use tax, including the following:
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts Form ST-12 Commonwealth of Virginia Sales and Use Tax Certificate of Exemption.
Additional guidance on acceptable exemption formats can be found here.
Businesses must file returns and remit tax according to their assigned Virginia sales tax due dates, which are generally monthly but may vary based on sales volume and filing history.
Virginia offers multiple online methods for filing and remitting sales and use tax:
All options may be found here: Remitting sales and use tax
Yes, Virginia does offer sales tax holidays.
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Virginia imposes the following point of sale fees:
Generally, shipping charges are exempt in Virginia if the charges are separately stated.
Virginia is an origin-based state.
Virginia businesses or individuals selling tangible personal property or certain services to Virginia consumers may need register to collect sales tax when meeting qualifying requirements. More information may be found here.
Further information from the Virginia Department of Taxation may be found here.
For more information on U.S. sales tax compliance across all 50 states, check out our:
Looking for an easier way to manage sales tax in [State] and beyond? Learn how Sovos simplifies compliance.
California imposes a statewide base sales tax rate of 7.25%, the highest minimum statewide rate in the U.S. This is the starting point for all California sales tax calculations.
Under California sales tax law, sales and use tax applies to most sales of tangible personal property. California sellers, including remote sellers, must collect and remit sales tax when selling taxable goods or services to California customers.
Examples of taxable items include:
Businesses should always review updates to California sales tax rules.
A seller is liable to collect and remit California sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Physical presence can be created by maintaining inventory or office locations in California, having representatives in California for the purposes of taking orders, making sales or deliveries, installing or assembling tangible personal property, or leasing equipment in California.
California enforces economic nexus for remote sellers. You must register for California online sales tax collection if your business has over $500,000 in sales into California during the current or preceding calendar year.
Learn more here.
Certain sales are exempt from California sales and use tax requirements. Understanding eligibility is essential before claiming a sales tax exemption in California.
Additionally, California exempts sales to certain entities from the sales/use tax, including the following:
To claim an exemption, a purchaser must provide an exemption certificate to the seller at the time of sale. The seller keeps the certificate and may sell property or services without charging sales tax. California requires different exemption certificates for different types of exemption. To obtain the relevant form for a specific exemption, consult the CDTFA’s full list of certificates here.
California offers multiple methods for filing and remitting sales and use tax:
Taxpayers with an average monthly sales and use tax liability of $17,000 or more in California are required to pay their taxes electronically on an accelerated schedule. More details can be found here.
Is California part of the Streamlined Sales Tax (SST) initiative?
California is not part of the Streamlined Sales Tax (SST) initiative, a multi-state agreement designed to simplify and standardize sales tax rules. More information concerning SST may be found here.
No, California does not currently have sales tax holidays.
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, California imposes the following point of sale fees:
Generally, California does not apply sales tax to shipping charges. California shipping charges are exempt as long as: (1) you ship directly to the purchaser by common carrier, contract carrier, or US Mail; (2) your invoice clearly lists delivery, shipping, freight, or postage as a separate charge; and (3) the charge is not greater than your actual cost for delivery to the customer.
California is a hybrid state. The state, county, and city taxes are based on the origin of the sale, and district taxes are based on the destination of the sale.
Businesses or individuals selling tangible personal property or certain services to California consumers may need to register to collect sales tax when meeting qualifying requirements. Sales and use tax permit registrations must be completed online through CDTFA Online Services. More information may be found here.
For more information on U.S. sales tax compliance across all 50 states, check out our:
Looking for an easier way to manage sales tax in [State] and beyond? Learn how Sovos simplifies compliance.
Retail merchants must begin to face the practical reality of President Donald Trump’s order that the U.S. Mint stop producing new pennies. The time is at hand when you will not always be able to make exact change for cash customers. This will undoubtedly lead to at least some customer service challenges, but the bigger issue is whether practical rounding policies for cash sales could run afoul of state and federal rules relating to the mandated equal treatment regardless of the method of payment.
In this environment, targeted state and federal guidance that give merchants a safe harbor would be enormously valuable, but sellers need not wait for new laws or regulations before taking proactive steps to prepare themselves for the inevitable.
In February 2025, the President announced, via social media, that he ordered the U.S. Treasury to cease production of the penny. According to the post, since a single penny costs more than 4 cents to produce, continuing to mint our smallest denomination of currency is simply wasteful government spending. Following the order, in May 2025 the Treasury ordered its last set of penny blanks.
The final pennies were minted in June and sent to banks in August. Come early 2026, no new pennies will be circulated. While all existing pennies will remain U.S. legal tender, some merchants are already beginning to experience a shortage, and it will only grow worse over time.
In normal circumstances, when retailers need coins to make change, they turn to one of the 165 federal reserve coin terminal facilities. In recent days, however, 60% of these facilities have stopped providing pennies. They simply don’t have them to exchange anymore. It’s in these locations where the penny shortage is the most pronounced. In fact, the Federal Reserve maintains a handy website showing where pennies can no longer be obtained.
Dropping pennies is by no means unprecedented. New Zealand did it in 1990, Australia in 1992 and Canada in 2012. In each case, there was no massive economic disruption. In Canada, the Government provided clear guidance to businesses on how to deal with the penny’s absence. Cash transactions should be rounded to the nearest five cent increment based upon the final amount payable by the consumer.
Sales tax (GST and PST in Canada) continues to be based on the stated retail selling price and not the rounded price, meaning that any additional money collected due to rounding do not represent additional taxable consideration for sales tax purposes.
The published guidance gives the following example:
Mr. Brown purchases supplies at the local hardware store in Ontario.
| 100 screws @ $1.79 each | $179.00 |
| HST @ 13% | $ 23.27 |
| Total | $202.27 |
| Amount paid | $202.25 (rounded) |
In this case, the total amount paid is rounded down to the nearest five-cent increment after the calculation of HST.
Of course, if this same transaction is conducted with a debit/credit card or other form of electronic payment, the customer pays exactly $202.27.
The implications of penny shortages have been widely reported in both the national and local media as retail sellers make decisions addressing their growing inability to make exact change.
While the Kwik Trip approach of rounding down is certainly the most customer friendly, it’s unclear whether it’s sustainable as the financial impact of always giving out extra change can quickly add up, especially as pennies get more scarce.
It’s possible that merchants may inadvertently run afoul of state and federal law if they choose to apply different rounding rules to cash versus non-cash transactions. First, several states, including Connecticut, Massachusetts, Maine, and New York have specific statutes restricting sellers from charging credit card customers more than those who pay by cash. For example, Massachusetts statute provides as follows:
No seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check or similar means.
This statute, which was intended to prevent retailers from assessing extra charges to customers using credit cards, could be interpreted as prohibiting a merchant from rounding down cash transactions if the same rounding is not extended to people who pay by credit card. While these laws were not written to target the scenarios presented by the loss of the penny, it’s entirely conceivable that a motivated attorney could attempt to argue for strict enforcement.
The federal challenge is of particular concern to food sellers that accept payments under the Supplemental Nutrition Assistance Program (SNAP). Specifically, the Equal Treatment Rule prevents sellers from treating SNAP recipients differently than other customers. This rule is intended to ensure SNAP recipients receive neither preferred or discriminatory treatment, but since SNAP benefits are provided through a debit card, any store policy which rounds cash transactions differently than debit transactions could be considered a violation.
This is especially true if cash transactions are rounded down but is also technically true if rounded up, since the law requires that benefits be accepted “at the same prices and on the same terms and conditions applicable to cash purchases…”
While no single customer will be significantly aggrieved, retailers have every reason to be concerned about class action lawsuits or qui tam/whistleblower litigation, which allows private citizens to claim that a business is committing fraud against the government.
Federal legislation could certainly help. In fact, such a bill has already been filed. The Common Cents Act, which has been introduced in both the House and the Senate, would clarify the following critical points.
If passed, these measures would give retail merchants a clear path to legitimately rounding all cash sales to the nearest nickel, ending any concerns about legal liability associated with SNAP. Further, the constitutional principle of federal preemption would likely foreclose any legal liability under state law pertaining to cash versus credit sales.
If the Congress is not willing or able to pass the Common Cents Act, the Department of Agriculture could draft a regulation specifying that rounding to the nearest nickel does not violate the Equal Treatment rule.
Since federal law does very little with respect to state and local sales tax, it’s not surprising that the Common Cents Act doesn’t mention the impact of rounding on tax determination and reporting. While no states have offered any official guidance, they would be wise to follow the Canadian example, holding that rounding to the nearest nickel does not change the amount of sales tax due and payable.
Regardless of whether federal or state guidance is forthcoming, businesses with cash customers need to prepare themselves for a penniless world:
The Federal decision to cease minting pennies, while not unprecedented, creates practical challenges for those businesses with a significant cash-paying customer base. While federal and state legislation would be welcome, it should not be expected. The time is now for forward-thinking companies to adopt compliant strategies that address the inevitable penny shortage. A little advanced preparation will minimize business disruption and the potential for any legal liability.
Gwenaëlle Bernier – Partner & Avocate Associée G56, Tax Technology & Transformation at EY
As France’s ambitious e-invoicing mandate approaches, Gwenaëlle Bernier – speaker at the Tax Compliance Summit Sovos Always On: Paris (19 Nov.) – shares expert insights on how digital transformation is reshaping tax compliance and operational performance. This interview dives into the real-world challenges and opportunities facing finance and tax leaders, revealing why the intersection of technology, regulation, and data is the hottest topic in French business today.
The first challenge is organizational: companies need a truly cross-functional framework that continuously involves the finance and accounting department, the tax department, and IT. Today these three pillars exist but often operate in silos, whereas the reform requires a unified view of accounting, tax, and IT issues, with dedicated time and clear governance. Implementation cannot be entirely “outsourced” to a service provider — some decisions and trade-offs must remain within the company, as they relate directly to its data and processes.
In practice, we first help companies establish this governance framework: clear executive sponsorship, shared accountability, and regular coordination points among teams. In large groups and mid-caps, this is crucial — the scale, diversity of flows, and ERP history make fragmented approaches ineffective. For small businesses, on the other hand, the challenge is simpler and the reform can fit into a broader simplification process supported by accountants or certified platforms.
Finally, companies must build new skills: tax teams need to understand data, while IT must understand tax logic. Anticipating business impacts — data quality, timing, upstream controls, reconciliations — has become essential. Successful projects are those where companies stop opposing “IT project,” “accounting project,” and “tax project,” and instead treat the reform as a single transformation, driven by a mixed, long-term team aligned around common goals.
It’s important to remember that the e-invoicing reform is, first and foremost, a tax reform — it is written into the French General Tax Code under the VAT chapter. It is therefore part of a broader framework of compliance and tax control, which is often overlooked, though it is key to understanding why data quality is so central to its implementation.
The real shift today is that every tax department is becoming digital. It’s no longer just a few tech-curious tax professionals — it’s a broad transformation. Most tax departments are acquiring new skills, and tax professionals themselves are learning to understand systems, data flows, and formats, and to translate regulatory requirements into technical language. This allows them to apply the rules more intelligently and in closer alignment with business needs.
The best practice is to embrace this evolution toward a “tech-enabled” tax professional. Digital tools allow tax teams to collaborate with the rest of the company through a shared language: data. And this data — long used mainly for financial performance or marketing — has now become a core tool of tax compliance. That’s what makes this reform unique: though rooted in taxation, it impacts the entire company. It forces organizations to question the very nature of their ERP data — whether it’s structured, reliable, and truly usable.
The move to prefilled VAT returns will not affect all companies in the same way. For small and medium-sized enterprises, it’s primarily an administrative simplification. They will benefit from support through their accountants or simple tools, sometimes mobile applications offered by certified platforms. For them, prefilled returns will reduce administrative work without significantly changing their organization.
For large companies and mid-caps, however, the impact will be far more structural. Until now, VAT returns have been prepared mainly by accounting teams, with tax departments stepping in only later — during interactions with the tax authorities or audits. Prefilled returns will change that division of labor: tax teams will now need to monitor data continuously, as it will be transmitted to the authorities daily and may prompt immediate follow-up questions.
We are entering an era of reciprocal transparency: companies will reveal their VAT treatment of each transaction in real time, while the administration will send back a synthesized view in the form of a prefilled return. This will inevitably require companies to rethink their internal organization — particularly the split between accounting and tax functions — and to strengthen coordination with IT. It will also demand new skills and heightened vigilance on data quality. The goal will no longer be to produce an accurate return at month-end, but to ensure the reliability of information transmitted day by day. That means better mastering ERP configurations, which in France have often been defined without real tax input. The pace, granularity, and nature of the work will change: companies will need to anticipate, validate upstream, and reconcile accounting and tax data more precisely.
The French tax administration is already equipped with artificial intelligence tools, the most well-known being Galaxie. This data-mining and analytics system, whose early versions date back to 2017, was formally established by decree a few years ago. It now forms the core of the administration’s intelligent data-processing capabilities.
As the reform rolls out and companies begin transmitting their e-invoices and e-reporting data, the administration will have not only the necessary technical infrastructure but also the software capabilities to analyze this information on a massive scale. By 2027, once all businesses are connected, the tax authority will have an almost complete view of France’s economic activity — what each company buys, sells, and trades domestically and abroad.
With Galaxie and this immense volume of data, the State will be able to conduct highly detailed economic and fiscal analyses. It will also transform the way audits are carried out: by the time a tax inspection begins, auditors will already have a detailed profile of the company, its operations, and any anomalies or unusual patterns compared to its sector. This is no longer theoretical — the public administration is ready to use these tools, and their effects will become tangible as the reform is fully implemented.
Today, finance and tax departments are still poorly equipped when it comes to AI. We’re at an early, experimental stage. Most companies are only beginning to explore the subject — often through general-purpose tools like office suite copilots — but very rarely with solutions designed specifically for tax or finance functions. True AI tools for compliance, anomaly detection, or tax data analytics are still being built.
There’s also a simple economic reason for this: finance and tax are not the company’s core business. Investment naturally flows to operational functions — those that produce and sell — while support functions come later, which explains the current gap.
However, the e-invoicing reform will accelerate this transition. Once companies are connected to certified platforms and able to exchange structured invoices, the next question will inevitably be: how can we use this data intelligently? That’s where AI will come in — to automate controls, enhance reliability, and anticipate discrepancies. Some platforms already offer advanced data-analysis features powered by AI, but adoption remains limited. Over the next few years, we’ll likely see rapid growth in these applications as tax departments realize the value of the data they now possess.
AI is already legally regulated in the French tax sphere. The main framework stems from Article 154 of the 2020 Finance Law. When this law was adopted in December 2019, the Constitutional Council defined the conditions under which the administration could use AI tools, setting out eight criteria to ensure ethical, transparent, and compliant usage — particularly regarding personal data protection. These principles were further clarified by the French Data Protection Authority (CNIL) in its September 2019 report, which remains the reference for AI oversight today.
We therefore already have a clear legal framework: the State has set the guardrails. But risks still exist. With the generalization of e-invoicing, the tax administration will gain access to a vast amount of transactional data between companies. Over time, it could end up knowing an enterprise’s ecosystem better than the company itself — its suppliers, clients, and business relationships.
The challenge, therefore, extends beyond personal data protection to include trade secrecy. This is crucial: authorities must prevent even unintentional disclosure of sensitive business information that could weaken competition or expose strategic details. As long as our economic model is based on fair competition, protecting trade secrets must remain a fundamental safeguard.
France made a decisive political choice in the summer of 2019: to make e-invoicing a cornerstone of economic modernization and efficiency. This commitment took shape in Article 153 of the 2020 Finance Law, which integrated e-invoicing and e-reporting into the General Tax Code. The decision reflects a longstanding conviction. Studies conducted at the European level as early as 2007 had already highlighted the potential benefits of such reforms in terms of simplification, productivity, and transparency. But France chose an ambitious path — to move forward on a fixed timeline, making the reform mandatory for all actors to accelerate digital transition.
Another reason for France’s leadership is the scope of its model. While most European countries separated the steps — first mandating structured e-invoicing, then, later, real-time reporting — France decided to do both at once. That makes the project more complex but also more complete.
At the same time, the 2020 Finance Law introduced a separate provision authorizing data mining, which led to the creation of the Galaxie system. In other words, France simultaneously launched digitalized exchanges, large-scale data collection, and AI-based analysis capabilities. This strategic decision explains why France now appears to be leading in both digital taxation and economic data governance.
France’s influence within the ViDA project will depend largely on how its representatives engage in European discussions. Within the Fiscalis group — which brings together finance ministry representatives from all Member States and the European Commission — much will hinge on France’s ability to defend its approach and share its experience.
In practice, France is already implementing, more than three years ahead of schedule, one of ViDA’s core pillars: the Digital Reporting Requirements. Starting in September 2026, France will effectively apply the same principles set to take effect across the EU in 2030. As a result, when ViDA comes into force, little will actually change for French businesses. Having already gone through this transition, they will likely serve as pilots and references for their European counterparts.
To make this advantage meaningful, France will need to promote both its model and its methodology at the EU level. The country has done extensive work on complex use cases — such as expense notes, multi-vendor invoices, and subcontracting — and on technical standards through AFNOR commissions. These efforts produced a pragmatic, collaborative approach that should be championed in Brussels. If each Member State designs its own rules, the goal of ViDA — harmonization — will be lost. The more aligned the standards, the smoother cross-border exchanges will become, improving both efficiency and competitiveness for European companies.
We are witnessing a genuine paradigm shift in how the State conducts tax audits — and, consequently, in how companies behave as taxpayers. Until now, France has operated under a retrospective model: companies submitted highly aggregated VAT returns, and audits often took place two or three years later, with inspectors reviewing past decisions and requiring lengthy explanations.
With the combination of e-invoicing, e-reporting, and AI tools like Galaxie, we are entering an era of near real-time tax oversight. The administration will have an immediate view of economic activity and be able to target audits more precisely. This could be a positive evolution if it helps focus efforts on genuine non-compliance while easing the burden on companies acting in good faith.
However, this increased transparency also calls for a change in mindset. Instead of relying solely on ex-post enforcement, the goal could be to establish an ongoing, cooperative dialogue between companies and the tax administration — one in which businesses explain their choices and challenges as they arise. Tax law is rarely black-and-white; it often involves interpretation, especially when business innovation outpaces legislation. The challenge will be to build a relationship of trust, where the State supports companies in applying the rules rather than sanctioning them years later. In essence, this could mean moving from a “rear-view” audit model to a smarter, more collaborative approach that fosters both compliance and economic vitality.
Florida imposes a statewide sales and use tax rate of 6%. In addition to state taxes, counties in Florida are authorized to impose discretionary sales surtaxes at various rates.
Florida’s sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Examples of taxable items include:
A seller is liable to collect and remit Florida sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Florida.
Florida enforces economic nexus for remote sellers. If your business has:
you may be required to register for and collect Florida sales tax.
Learn more on the Florida Department of Revenue Sales and Use Tax Page
Certain sales in Florida are considered generally exempt from the sales and use tax requirements.
Examples of exempt items include:
Additionally, Florida exempts sales to certain entities from the sales/use tax, including the following:
To claim an exemption, a purchaser must provide an exemption certificate to the seller at the time of sale. Exemption certificates may be obtained through the Florida Department of Revenue’s e-services website. The most used certificate is the resale certificate which is automatically issued to businesses registered to collect sales tax in Florida and renewed annually.
Florida businesses or individuals selling tangible personal property or certain services to Florida consumers may need to register to collect sales tax when meeting qualifying requirements. To register to collect state and local sales taxes in Florida, submit a completed DR-1 application form to the Florida Department of Revenue or complete an online registration here.
Florida offers multiple methods for filing and remitting sales and use tax:
Businesses with $5,000 or more tax due in the prior fiscal year are required to file and pay taxes online, and businesses with $200,000 or more tax due in the prior fiscal year are required to file and pay estimated tax monthly.
The current Florida sales tax rate is 6%.
Yes, Florida currently offers numerous does offer sales tax holidays.
Generally, labor for the maintenance, installation, or repair of tangible personal property is subject to sales tax. Also, labor performed to fabricate or alter tangible items belonging to others is subject to sales tax. Labor performed at the job site to improve real property is not subject to sales tax.
Generally, yes however, children’s clothing intended for children 5 years old and younger is exempt.
Ohio imposes a statewide sales and use tax rate of 5.75%, with local jurisdictions allowed to levy additional local sales taxes. Combined Ohio sales tax rates may vary by county or city. Understanding the current rate and how it applies to your business is essential for maintaining compliance with Ohio sales tax laws and regulations.
Learn more about managing compliance across states in the Sovos State-by-State Guide to Sales Tax.
Ohio sales tax applies to the sale of tangible personal property and certain taxable services. Sellers offering taxable goods or services must collect and remit tax to the state.
Examples of taxable items and services include:
If you sell to customers online, it’s important to understand how Ohio sales tax for online purchases applies to your transactions.
Learn more about Ohio sales tax rules and thresholds in the Sovos blog on the Ohio Economic Nexus.
A seller must collect and remit Ohio sales tax if they meet the state’s nexus requirements—either physical or economic.
Physical presence is established by having a business location, office, warehouse, vehicle, employee, or other representative operating within Ohio.
Economic nexus applies to remote sellers making sales into Ohio. You create nexus if your business exceeds $100,000 in gross sales or 200 separate transactions within the state.
For more details, visit the Ohio Department of Taxation – Out-of-State Sellers page or review the Sovos State-by-State Guide.
Certain products and services are exempt from Ohio sales tax. Understanding these exemptions can help businesses avoid overpayment and ensure compliance.
Ohio also exempts transactions with specific organizations, including:
To claim an Ohio sales tax exemption, entities must provide a valid exemption certificate (such as Form STEC B ) at the time of sale.
More information can be found at the Ohio Department of Taxation Forms Page.
Businesses can file and remit Ohio sales and use tax using several methods:
Taxpayers whose liability exceeds $75,000 in any calendar year are required to pay sales and use tax by electronic funds transfer (EFT) and to make accelerated payments for the second ensuing and each succeeding year. An accelerated payment must be equal to at least 75 percent of the anticipated tax liability for that month. For taxpayers required to make accelerated payments, the payment must be made by the 23rd day of the month for which the tax is due. Accelerated EFT Filers page.
Yes. Ohio participates in the Streamlined Sales Tax (SST) initiative to simplify and standardize multistate sales tax compliance. More information concerning SST may be found here.
Yes. Ohio offers an annual sales tax holiday, read here to learn what to expect. For this year’s Ohio sales tax holiday schedule, check tax.ohio.gov.
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Ohio imposes the following point of sale fees:
Generally, shipping is taxable when part of the total sales price.
Ohio uses both origin and destination sourcing depending on the transaction type.
Yes. Ohio accepts Simplified Electronic Returns (SER) from any seller or tax provider that can transmit the return properly. You don’t need to be in the SST Model 1 program to use the SER—providers like Sovos can file on behalf of any client who opts into that method.
Ohio businesses or individuals selling tangible personal property or certain services to Ohio consumers may need register to collect sales tax when meeting qualifying requirements. More information may be found here.
Further FAQ’s provided by the Ohio Department of Taxation may be found here.
For more information on Ohio sales tax rules, exemptions, and filing requirements, visit:
Looking for an easier way to manage state sales tax rules and beyond? Learn how Sovos simplifies compliance.
Washington imposes a statewide sales and use tax rate of 6.5%. The state does allow local jurisdictions to levy additional sales taxes.
Washington sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Examples of taxable items and services include:
A seller is liable to collect and remit Washington sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Washington.
Washington enforces economic nexus for remote sellers. If your business has:
you may be required to register for and collect Washington sales tax.
Learn more on the Washington Department of Revenue Out of State Businesses Reporting Thresholds and Nexus guide.
Certain sales in Washington are considered generally exempt from the sales and use tax requirements.
Additionally, Washington exempts sales to certain entities from the sales/use tax, including the following:
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts:
Form: 27 0032: Retail Sales Tax Exemption Certificate,
Form F0003: Streamlined Sales Tax Exemption Certificate
All businesses are required to file and pay electronically
Washington offers multiple methods for filing and remitting sales and use tax:
Washington provides various electronic options for filing and remitting sales and use tax, ensuring compliance is both efficient and accessible for businesses. Understanding the state’s participation in the Streamlined Sales Tax initiative and awareness of applicable point-of-sale fees can help businesses maintain accurate tax practices and avoid potential issues. Staying informed about current requirements and available resources will support continued compliance with Washington’s tax regulations.
Yes, Washington is part of the Streamlined Sales Tax (SST) initiative, a multi-state agreement designed to simplify and standardize sales tax rules. More information concerning SST may be found here.
No, Washington does not currently offer sales tax holidays.
Generally, Washington applies sales tax to shipping charges if the underlying goods are subject to sales tax. If an invoice contains a single shipping charge for a mixed shipment of taxable and exempt goods, the sales tax will apply to the percentage of the shipping charge attributed to the taxable goods. When allocating the shipping charge business may base the percentage allocated to the taxable goods on either the price or weight of the taxable goods.
Washington follows destination-based sourcing for sales tax purposes.
The sales tax is a tax imposed directly on retail sales which businesses are required to charge to their customers.
The business and occupation tax (B&O) is a tax for the act or privilege of engaging in business activities which is imposed on a percentage on the business gross proceeds of sales or gross income of the business. The rate of the B&O tax is based on the type of business. B&O taxes are paid by businesses and are not directly charged to their customers.
It is worth noting that the retailing category of the B&O tax uses the same definition of retail sales as the sales tax.
Washington imposes sales tax on sales of software regardless of the method of delivery of the software. As a result, there is a Washington sales tax on digital goods and software. Beginning October 2025, Washington has extended the sales tax to custom software and software customization where previously the state limited the scope of the tax to prewritten software.
Washington also applies sales tax to sales of digital goods and digital automated services. The state excludes some services, such as data storage and certain financial services, from the tax on digital automated services however the scope of these exclusions was significantly reduced starting October 1, 2025. Finally, the state recently expanded the scope of the sales tax to apply to various IT related services such as software implementation services, software consulting, and IT support services.
Yes. Washington accepts Simplified Electronic Returns (SER) from any seller or tax provider that can transmit the return properly. You don’t need to be in the SST Model 1 program to use the SER—providers like Sovos can file on behalf of any client who opts into that method];
Washington businesses or individuals selling tangible personal property or certain services to Washington consumers may need register to collect sales tax when meeting qualifying requirements. More information may be found here.
For more information on U.S. sales tax compliance across all 50 states, check out our:
Looking for an easier way to manage sales tax in Washington and beyond? Learn how Sovos simplifies compliance.
Nevada imposes a statewide sales and use tax rate of Rate of 4.6%. The state does allow local jurisdictions to levy additional sales taxes.
Nevada sales and use tax applies to the sale of tangible personal property. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Examples of taxable items include:
Services are taxable in Nevada.
Generally, Nevada does not tax shipping charges as long as they are separately stated.
Certain sales in Nevada are considered generally exempt from the sales and use tax requirements.
Examples of exempt goods and services include:
Additionally, Nevada exempts sales to certain entities from the sales/use tax, including the following:
Nevada enforces economic nexus for remote sellers. If your business has either of the following in the current or previous calendar year, your business is required to register for and collect Nevada sales tax:
Nevada offers multiple methods for filing and remitting sales and use tax:
Nevada businesses or individuals selling tangible personal property to Nevada consumers may need to register to collect sales tax when meeting qualifying requirements. You can apply for the required tax permits through the My Nevada Tax Portal.
If your total payment is $10,000 or more, you must pay your Nevada sales tax return online.
Sales tax returns must be filed:
Anyone in the business of selling or transferring tangible personal property is required to pay Sales Tax in Nevada.
Keep a close eye on point-of-sale fees. Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Nevada imposes point-of-sale fees on tires.
You can make a sales tax payment online using the My Nevada Tax Portal.
Generally, Nevada does not tax shipping charges as long as they are separately stated.
The consumer use tax rate is the same as the sales tax rate applicable in the budyer’s local area.
Consumer use tax is not imposed when the sales of the property to the consumer is subject to sales tax. For the most part, consumer use tax applies to:
Other purchases of tangible personal property on which Nevada Sales Tax has not been paid.
Cyrille Sautereau – President FNFE-MPE & CEO Admarel Conseil
Ahead of the Tax Compliance Summit Sovos Always On: Paris on 19th November, we asked Cyrille Sautereau, Chair of the AFNOR “Electronic Invoice” Commission and President of the National Forum for Electronic Invoicing and Public eProcurement (FNFE-MPE), to discuss the evolving landscape of e-invoicing reform in France, the challenges of interoperability, and the country’s role in shaping European standards.
The National Forum for Electronic Invoicing was created in 2012 following the establishment of the European Multi-Stakeholder Forum on Electronic Invoicing (EMSFEI), which led several Member States, including France and Germany, to create their own mirror forums. From the outset, its mission has been to support the development of e-invoicing in France, across both public and private sectors, in alignment with EU initiatives. We became an association in 2016 and now have more than 280 members divided into three colleges: users, service providers, and independent experts and consultants.
Our role is both normative and educational. Normative, because we actively contribute to the development of European and national e-invoicing standards, in close collaboration with the AFNOR “Electronic Invoice” Commission, which I also chair; and educational, because we provide best practices and help the ecosystem understand the regulations, enabling companies to transition smoothly to e-invoicing.
Finally, we fully play our role as a bridge between public authorities and the market. The FNFE is regularly consulted by the tax administration and lawmakers, particularly on regulatory developments related to the reform. We bring field expertise — our knowledge of invoicing practices, tools, and the operational constraints businesses face. This ongoing dialogue helps fine-tune regulations and ensures a harmonized, effective implementation of the reform.
The FNFE-MPE brings together a wide range of stakeholders: businesses, vendors, service providers, accountants, professional federations, and even representatives of the public administration. Our mission is to facilitate dialogue among these groups, which don’t always share the same priorities. The key is transparency and co-construction: everyone can take part in our working groups and contribute to developing the standards.
We hold several plenary sessions each year, along with about ten thematic working groups covering topics such as e-invoicing reform, interoperability, standards and norms, communication, best practices, invoicing and payment, B2G invoicing, and factoring. These forums allow members to share feedback, identify practical challenges, and bring them to standardization bodies.
This collaborative approach has fostered a genuine common language between public and private actors. That’s the strength of the FNFE — its ability to unite the entire ecosystem around a shared vision, ensuring that both technical and regulatory choices remain realistic, effective, and business-oriented.
Interoperability is indeed one of the most sensitive aspects of the reform. Contrary to what people might think, the main challenge doesn’t lie in connecting private platforms to the Public Invoicing Portal — that interface is precisely defined by the DGFiP’s specifications — but rather in ensuring smooth communication among private players themselves.
The first challenge concerns certified platforms (formerly PDPs), which must be able to exchange data without multiplying bilateral integrations. That’s why we supported the rollout of the Peppol network in France — a model where one connection makes you interoperable with all other network participants. The second pillar is a shared addressing system based on the SIREN number and managed within a public directory. This ensures that every business is reachable through a stable e-invoicing address — one that remains unchanged when switching platforms.
Finally, there’s the “last mile”: connecting companies’ internal systems (so-called “compatible solutions”) to their certified platforms. Given the variety of software tools on the market, proprietary integrations must be avoided. That’s the goal of the AFNOR initiative to design a standardized API — a universal connector that ensures seamless transitions between platforms. Portability is essential for an open, sustainable ecosystem.
The French reform is closely aligned with the European ViDA project, which aims to harmonize e-invoicing and reporting practices across the EU. ViDA calls on Member States to establish systems for e-reporting and e-invoicing based on structured data and standardized formats — exactly what France has already implemented.
Our national model, based on the exchange of structured electronic invoices between French taxpayers and the automatic transmission of data to the tax administration, already mirrors ViDA’s intended architecture. The key difference is that France chose from the outset to combine mandatory e-invoicing with e-reporting to the tax authorities — whereas other countries limited their first phase to B2B e-invoicing, postponing e-reporting to a later stage. We also introduced two unique features: invoice status tracking — ensuring lifecycle traceability and giving suppliers the visibility and value they’re entitled to — and B2C e-reporting, which isn’t covered by the European scope. In short, France won’t need to adapt its system to ViDA; it already embodies it.
France can indeed become a European benchmark, provided the operational rollout succeeds. What sets us apart is the decision to tackle the issue holistically, integrating technical, regulatory, and business aspects from the beginning. While other countries proceeded step by step — first e-invoicing, then reporting — we decided to merge both dimensions right away.
Requiring VAT data to be transmitted to the tax administration from each invoice inherently assumes that, within each invoice, the seller is responsible for VAT collection and the buyer for deduction. This creates additional complexity in many cases where intermediaries — such as aggregators handling invoice consolidation or grouped payments — play a role without being the actual taxpayer.
Our approach builds on significant collaborative work within the AFNOR “Electronic Invoice” Commission, which I also chair. Over six months, more than 250 experts from all sectors took part in over sixty meetings. This work revealed the real complexity of use cases, often underestimated — for example, scenarios where several service providers appear on a single invoice for one buyer, such as in the water, leasing, insurance, or travel sectors. These configurations turned out to be far more common than expected. The AFNOR work also helped align French practices with the European semantic standard EN 16931 — ViDA’s foundation — while identifying its limitations and addressing them through data extensions or management rule updates.
Finally, this process confirmed the need for flexibility — allowing human-readable formats, like hybrid Factur-X invoices, which include operationally useful data that may not fit within the semantic standard or technical capabilities of some small businesses.
This ability to identify specific cases and address them within a shared normative framework is, in my view, France’s main strength. It helps anticipate complex situations, deliver standardized solutions (“the same problems, the same answers”), and maintain coherence between regulatory requirements and business realities. Many Member States will likely draw inspiration from this integrated approach when implementing ViDA.
Beyond compliance, the reform will fundamentally change how companies manage their operations. By generalizing e-invoicing, we’re introducing structured, reliable, and continuously available data — replacing the paper and PDF-based exchanges that still dominate today. This is transformative: data becomes instantly usable by management systems, without re-entry or manual processing.
In practical terms, this will allow all companies — including SMEs — to reach levels of automation and visibility previously reserved for large groups. Cash-flow reporting or monthly closings will no longer take days of reconciliation: invoices will be integrated in real time, and discrepancies will appear immediately. This responsiveness will enhance business leaders’ ability to manage performance, detect weak signals, and anticipate payment delays — in short, to shift toward predictive management.
In the long run, value-added services could emerge from aggregated, anonymized data analysis. For example, a platform could offer buyers average market price benchmarks based on peer transactions, helping them better position themselves competitively. These uses will need to be regulated to preserve confidentiality, but they open promising perspectives. Competitiveness will thus depend not only on compliance, but on data quality and intelligent exploitation.
We regularly take part in events like Always-On because they play an essential role in collective education around the reform. The more opportunities for dialogue, the better. For the FNFE-MPE, it’s a concrete way to fulfill our mission of supporting businesses. These meetings help clarify what the reform truly entails, demystify its implementation, and provide a neutral perspective that complements that of service providers.
That’s important, because many companies still have a fragmented understanding of the reform: some overestimate its complexity, while others haven’t yet grasped its full impact. In this context, direct exchanges among public authorities, experts, vendors, and users are key to building a shared culture and reliable reference points. Such events help reinforce a crucial message: the success of e-invoicing depends on adopting shared standards, ensuring consistency of practices, and rejecting unnecessary complexity.
For too long, everyone built their own processes, portals, and formats — often with limited success. One of the reform’s main goals, and one of the benefits of events like Always-On, is to move beyond this “each to their own” mindset and build a truly interoperable ecosystem.
The importance of AI will grow as data volumes increase. AI can first help companies better understand what the administration “sees” about them by comparing their internal data with prefilled information. This “mirror visibility” can help identify and explain discrepancies even before an audit is initiated.
That said, we must remain clear-eyed about technology’s limits. AI is an analytical support tool, not an arbiter of truth. Its effectiveness will always depend on the algorithms behind it and the quality of the data it processes. Used rigorously and transparently, AI can strengthen trust between companies and tax authorities by making processes more objective and efficient. Conversely, if poorly managed, it risks creating new areas of opacity or misunderstanding.
The challenge in the years ahead will be to strike the right balance: leveraging AI’s power to make compliance more reliable and streamlined while preserving human interpretation and dialogue. Only under these conditions can technology truly serve trust, rather than weaken it.
KSeF, or the National E-Invoicing System, is Poland’s approach to continuous transaction controls (CTC), a trend that sees tax authorities gaining real-time visibility of transactions. The ‘clearance’ model implemented in Poland demands that invoices be issued in a structured electronic format and undergo validity checks, ensuring compliance and accuracy of e-invoices before they are sent to recipients.
Operational on a voluntary basis since 2022, the KSeF e-invoicing system is set to become mandatory in phases starting February 2026. Poland’s e-invoicing requirements encompass both VAT active and exempt entities, covering B2B and B2G transactions, while B2C e-invoicing remains optional. Importantly, the system includes both domestic and cross-border transactions, although with specific rules for invoice exchange in cross-border scenarios.
KSeF 2.0 emerged as a direct response to stakeholder feedback during the voluntary implementation phase. After extensive public consultations, the Polish Ministry of Finance addressed several critical concerns raised by businesses. These included the need for offline invoicing capabilities during connectivity issues, support for B2C transactions, clearer rules for self-billing in cross-border scenarios, better handling of complex business structures like VAT groups, and many other concerns.
The resulting KSeF 2.0 framework includes both legislative changes (through the KSeF 2.0 Act and other implementing regulations) and technical enhancements (via the new FA3 schema and API). The new system adds support for optional B2C invoicing, previously unavailable in the voluntary phase, giving issuers the discretion to include such transactions within KSeF. It also introduces the KSeF certificates, which will be used for authentication in the system and for the generation of the QR code used in the offline modes. Special attention is given to offline modes, particularly the “offline 24” mode, which allows for invoice submission by the next business day in case of issues on the taxpayer’s side.
QR codes will be required when exchanging invoices outside of KSeF both in online or offline modes with the need to add a second QR code for invoices issued in offline mode and sent to the recipient before KSeF clearance.
As Poland advances towards the full implementation of KSeF 2.0, businesses must stay informed and prepared for these regulatory changes. The system’s phased rollout offers a window for adaptation, but early compliance will ensure smoother transitions and mitigate potential disruptions.
Sovos has created a number of resources to help businesses prepare for Poland’s KSEF 2.0 e-invoicing requirements: