The South Dakota v. Wayfair decision paved the way for states to determine retailers’ sales tax nexus obligations based on sales revenue and transaction volume instead of physical presence. A growing ecommerce business, along with this new regulatory requirement, outpaced Boscov’s internal resources to remain compliant with its new U.S. filing obligations. Meanwhile, an inefficient semi-manual process, using data flowing to Excel worksheets from its ERP, required the team to spend over 20 hours a month on tax compliance, leaving less time to focus their resources on other areas of the business they were responsible for, including their brick and mortar stores’ financial reporting.
“We knew we had to look at a new solution to satisfy our filing obligations in the wake of Wayfair,” recalls Mark Oulds, Director of Taxation. “We didn’t have the resources to go out and get the licensing done for each state that we’re selling into through our ecommerce site and manage all those new returns in-house. It didn’t take much effort on our side to implement and we spend next to no time now on ecommerce tax compliance. I would recommend Sovos to any company, as it just makes economical sense.”