Today we are going to discuss the two most important aspects i.e. retail and taxation. As the new financial year is here everybody is confused or feeling scared about the new taxation laws and its impact on their retail business. Here are three retail-related tax predictions that you must read before filing your return.
- In 2019, we’ll see marketplaces and traditional retailers converge in both ways, where big e-stores like Amazon are moving to forms of conventional retail, and traditional retailers like Albertsons are making the move to commercial centers to remain significant in the advanced economy. This creates complexity for organizations and governments alike – particularly with regards to how marketplaces are taxed. By 2020, every U.S. state will have a law forcing commercial centers to collect sales tax in that state – whether they have a physical presence or sell remotely.
- In 2019, buyers will be the main strength behind any organization who need to gather and remit taxes. In this year, each retailer has to recognize what all factors are accessible for taxation Now the Supreme Court has also ruled that states would be allowed to collect internet sales tax. Its complete control is in the hands of the customers. Since retailers don’t know the origin of their clients, they must be ready for all the consequences.
- Based on the present scenario, it is clear that by 2025 real-time tax approval and remittance will be a worldwide subject of discussion. Numerous countries such as Brazil, Italy, and Poland are already executing real-time compliance and accounting. However, the United States has always stepped behind when it comes to advanced tax collection. My view is that while this will definitely be a topic of conversation, the US government will not approve real-time taxation at the time of sale. The reason is this would be a massive technology issue that our present infrastructure cannot support and that the government is not willing to invest in.
I hope that all of you get the answers to your queries about retail and taxation !!!