Drop Shipping in a Post-Wayfair World Self-Study Webinar (1.5 Hours)

Drop Shipping in a Post-Wayfair World Self-Study Webinar (1.5 Hours)

CPE Credit: 1.5 Hours

Price: $60.00

NASBA Field of Study: Taxes

 

Overview

In this information-rich self-study webinar, state and local tax specialist Mike Fleming reviews the basics of drop shipping, and explores the impact of the Wayfair decision on retailers and suppliers. In addition to sharing a real-life case study, this critical course delivers strategies and best practices to implement moving forward, and clarity on resale documentation.
 

AGENDA HIGHLIGHTS

•  Drop Shipping Basics
   – Why is drop shipping so confusing for so many?
      – At least two transactions

      – Terminology
      – Misinformation
      – Disbelief
      – Don’t apply or don’t know the basics

   – Typical scenarios and transactions
   – What is nexus and what creates it?
   – Economic nexus

      – No physical presence required
      – Can be based on sales

      – Can be based on transactions
      – SD $100,000 or $200
      – What about lower thresholds?
   – Remote seller use tax notice and reporting requirements
   – Which state’s rate do we use?
   – When should tax be collected?

   – Collecting certificates
   – Sale for resale
   – Problems created by drop shipping for suppliers, customer service and retailers
   – Ten most difficult states
   – Collecting tax from retailers

•  The Impact of Wayfair on Suppliers
   – Potential nexus in more states?
      – Some states count resale
      – More registrations and returns
      – More certificates to collect
      – More knowledge to learn
   – Good faith acceptance issues?
      – What happens if one vendor has made more than 200 shipments into a state?
      – Alternative documentation?

•  The Impact of Wayfair on Retailers
   – Potential nexus in more states?
      – Some states count resale
      – More registrations and returns
      – More certificates to collect
      – More knowledge to learn
   – Alternative documentation?

      – Available only if you don’t have nexus
   – States calculate thresholds differently
      – The threshold numbers
      – The lookback period
      – What’s included

•  Best Practices for Suppliers
   – Stay informed
   – Register when needed
   – Educate employees and customers
   – Track retailer transactions, and more…

•  Certificate Best Practices
   – Have a system
   – Decide who will manage
   – Store certificates centrally and digitally
   – Update certificates 3-4 years

•  Best Practices for Retailers
   – Stay informed
   – Register when needed
   – Register voluntarily when it makes sense

   – Educate yourself and suppliers

•  Certificate Validation
   – Resale certificate common mistakes

   – State Exemption Certificate

•  Identifying Problems & Dealing with Audits

•  Discussion of a Real-life Case Study

 

LEARNING OBJECTIVE  To provide accounting and tax professionals with insight on the impacts of the Wayfair decision on drop shipments
for retailers and suppliers, and details on strategies and best practices to implement moving forward.

PREREQUISITE  Working knowledge of state and local sales tax.    ADVANCE PREPARATION  None.    PROGRAM LEVEL  Overview.  
NASBA FIELD OF STUDY
  Taxes.    DELIVERY METHOD  Self-Study.

Detailed Learning Objectives

Identify lessons learned from recent case studies

Identify the continuing role of physical nexus

Recognize the thresholds utilized by states with remote seller use tax notice and reporting requirements

Identify the range of penalties for noncompliance with notice and reporting requirements

Recognize the implications of missing, incomplete, or invalid resale certificates

Recognize the basic drop shipping business model and its resultant compliance implications

Identify the most common post-Wayfair economic nexus state thresholds