- Holiday cyber shopping has significantly increased, becoming a major part of Thanksgiving sales
- Online sales dominated Black Friday with a record $10.8 billion in revenue, a 10.2% increase from the previous year
- Cyber Monday sales were projected to surpass previous records with an expected $13.2 billion in sales, up 6.1% from 2023
- Peak online spending on Cyber Monday was expected between 8 p.m. and 10 p.m., with $15.7 million spent every minute
- The rise in online shopping has led some employees to work remotely during the holidays to shop more conveniently
- Companies experiencing a surge in sales may need to collect sales tax in states where they reach economic nexus
- It is advised that companies monitor their sales to determine when they reach the $100,000 threshold in any state
- Companies should establish systems to manage sales tax obligations to avoid severe penalties
- Determining the taxability of products varies by state and depends on the type of products and buyers
- Registration for sales tax is necessary in states where companies are close to reaching economic nexus
- Companies should maintain a tax calendar to manage registration details, filing frequencies, and e-file credentials
- Preparation for tax filing should include capabilities for both online and paper returns and handling tax notices
Source: taxconnex.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
