Treasury Secretary Discusses Remote Commerce Sales Tax

In the course of testifying at a Senate Appropriations Committee hearing a few days ago, Treasury Secretary Steven Mnuchin hinted the Administration may be close to articulating a position on the application of sales tax to remote/internet commerce. Characterizing the issue as one of collection, Secretary Mnuchin recognized that tax revenue from online purchases is an important funding source for states.

The remarks came in the context of a discussion regarding the current tax collection practices of Amazon and other online retails. While Amazon has recently moved to collect and remit sales tax across the country, this approach does not apply Amazon Marketplace sales where third-party sellers are permitted to sell products on Amazon’s centralized platform. Currently, Amazon offers Marketplace sellers an optional state sales tax collection service.

Stay tuned to the Sovos Regulatory Feed for additional developments.

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Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern tax. As governments and businesses go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports 5,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.
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