2020 Sales Tax Changes Midyear Update

The 2020 Sales Tax Changes Midyear Update discusses the significant shifts in sales tax laws and practices brought on by the COVID-19 pandemic. As businesses faced disruption from lockdowns and changes in consumer behavior, many states introduced temporary sales tax relief programs, such as waiving penalties for late payments, extending filing deadlines, and offering tax exemptions for essential goods like masks and disinfectants. The paper highlights how businesses in different sectors, including e-commerce and brick-and-mortar retailers, had to adapt rapidly to new tax obligations triggered by shifting sales patterns and new product lines. With the rise of e-commerce, there has been an increased focus on economic nexus, marketplace facilitator laws, and product taxability, reshaping the tax landscape. Additionally, the report covers global tax relief initiatives, emphasizing how countries like Canada, Mexico, and Malaysia have implemented similar measures to support businesses. It stresses that while tax relief offers temporary relief, businesses must remain mindful that sales tax liabilities are ongoing.

To navigate the complexities of changing tax laws and stay compliant, download the full white paper today.