When New York first passed its law defining what constitutes a “vendor” subject to collecting sales tax in the 1980’s, the idea of online shopping sounded like science fiction. In retrospect, NY may have effectively enacted the first “economic nexus” law when they drafted their definition of “vendor” to include a person who regularly or […]
Sovos Announces Resource to Track Direct-to-Consumer Wine Shipping Rules
Sovos is excited to announce the launch of our new ShipCompliant Direct-to-Consumer (DtC) Wine Shipping Rules resource center. Wineries can use this tool to track the compliance obligations they have in any state where they currently sell their products. They can also review the requirements in any new state they hope to enter.
The DtC market has seen tremendous growth in the last ten years, topping $2.6 billion in sales in 2017, as was reported in the annual Direct-to-Consumer Wine Shipping Report. This growth seems poised to continue as states, wineries, and consumers embrace this channel. For example, Pennsylvania legalized DtC wine shipping only in 2016, but it has already catapulted into the top 10 destinations for shipments.
Despite this surge, DtC wine shipping is still not accepted in every state. A handful states do not permit it outright, while a few others take the middle road and only allow DtC shipping only when consumers have made their purchases while on-site at a winery’s tasting room.
These varying – and often complex – rules create a complicated landscape for wineries looking to sell through the DtC channel. The goal of the ShipCompliant DtC Wine Shipping Rules resource center is to enable wineries to ship wine direct-to-consumer with the confidence they are in compliance by arming them with the right information and resources.
The DtC Wine Shipping Rules page allows users to select states using an interactive map. Each state page offers an authoritative look at what wineries can expect when they sell wine DtC to those areas, for instance, which licenses they will need to apply for, which taxes they will need to charge, and any restrictions on the products that can be shipped DtC.
About ShipCompliant by Sovos
Sovos offers a nimble software solution tailored to the unique compliance obligations faced by beverage alcohol businesses. As part of the Sovos suite of solutions, ShipCompliant users have access to constantly updated, accurate regulatory information for each of the jurisdictions in which they have compliance obligations.
Sovos’ ShipCompliant platform is the leading compliance and technology platform, automating registrations, tax calculations and reporting in the heavily regulated beverage alcohol industry. With ShipCompliant by Sovos, wineries, breweries, distilleries and other beverage alcohol companies can stay ahead of the latest regulatory changes impacting their business models. Learn more at sovos.com/shipcompliant.
With recent enforcement measures, the IRS has offered definitive proof that the Affordable Care Act (ACA) is still alive and that the agency plans to strictly enforce ACA reporting. Last spring, the agency issued Letter 226J to Applicable Large Employers (ALEs) that failed to cover 95 percent of employees. ALEs are companies with 50 or […]
UPDATE (Jan. 8): Reporting season is moving forward according to plan. The IRS has announced that it will process tax returns on schedule and without delays. While the agency will clarify its contingency plan in the coming days, organizations should proceed as planned with 1099 reporting and other seasonal filings. The IRS will recall a […]
The South Dakota v. Wayfair decision last June has created a lot of angst for indirect tax professionals and the businesses they work so hard to protect from the burdens of sales and use tax filing. Six months later as we begin the new year, that angst has not gotten any lighter. Any federal legislative […]
2018 was a volatile year in indirect tax compliance for tax, finance and IT professionals worldwide. With an increase in globalization and tax gaps surpassing tens of billions in some countries, it’s not surprising that one of the biggest challenges governments are addressing is revenue collection. Like enterprises, governments are creating new, technology-driven processes to […]