With the recent Supreme Court decision on South Dakota v Wayfair, Freestyle Software has been working on solutions to help integrate these changes into the M.O.M. system.
First a quick recap on what happened, on June 21, 2018 the Supreme Court ruled in favor of South Dakota. What this means is that going forward, if you as a merchant accrue more than $100,000 in sales OR have 200 individual sales in the state per calendar year you will be required to collect and report on the state you have collected tax in. We expect that many states will enact their own laws and that the tax compliance burden facing eCommerce companies will continue to increase.
What we’re doing
By now you’re been thinking about that million-dollar question, what do I need to do and how will Freestyle help me?
We are working on three options for you and it is up to you the merchant to select the option that best suits your needs.
Import tax data via our API plugin – This will require you to be on version 8 or higher, and to use our API to import the tax rates for each state you do business in. This would then require you to export out the reporting required for you to submit to each state where you exceeded the threshold.
Option 2 (In Progress):
Get the tax rates in M.O.M. 10 – This will be available for version 10 only. We have worked with partners to grab the tax rates for each individual state and will now allow you to select the tax tables that you need. These can then be imported into M.O.M. directly. Reporting will still need to be done manually.
Option 3 (Currently Researching):
As we work on what’s next, we are researching possible integrations with Avalara, TaxJar and other popular tax tools to allow you to import tax calculations from M.O.M. into the system directly. This would require a subscription to one of the tax services.
On August 9, we will be holding our first Software for Life Office Hour Session, open to all current customers, where we can answer your questions on this topic and talk about our plans to support you on behalf of this landmark decision. Sign up today if you already haven’t.
Haven’t heard about Software for Life, or want to learn more? Contact you solutions specialist today, to learn about Office Hours and more with Software for Life. You can reach us at firstname.lastname@example.org.