Are Tariff Changes Threatening Your Business? Here's What You Should Know 🤔

Spring fever hitting your tax desk? We've got the perfect cure. 

Dive into this month's latest sales tax updates and discover how tariffs could impact your e-commerce business. Plus, we’ll also answer a question from you.

Fresh tax insights are just a scroll away! 👇

SALES TAX NEWS

1️⃣ Utah amended its economic nexus threshold with the signing of S.B. 47 in March 2025, which removes the previous economic nexus of 200 or more transactions. The change goes into effect on July 1, 2025.

2️⃣ Arizona's Department of Revenue clarified that businesses don't need physical presence to be subject to Transaction Privilege Tax (TPT), establishing substantial nexus through physical and economic factors. Economic nexus thresholds only apply to retail sales, but businesses with state nexus automatically have nexus in every Arizona city and are subject to all applicable local taxes.

3️⃣ An Indiana restaurant's LLC was denied a sales tax refund for chef's aprons and linens, as the Department of Revenue ruled these items weren't "essential and integral" to food production nor qualified as safety equipment under Indiana law. The Department determined the aprons merely kept linens clean and were "the outfit that Taxpayer's cooks are expected to wear on the job.”

4️⃣ The Illinois Department of Revenue indicated that dental fluoride varnish likely doesn't qualify for the reduced 1% medical device tax rate, despite being a Class II FDA-regulated device used exclusively by dental professionals. The product fails to meet Illinois' strict criteria for tax reduction as it's neither a labeled medicine nor a medical appliance that directly substitutes for a malfunctioning body part, and isn't a qualifying Class III device.

5️⃣ The Virginia Department of Taxation is introducing the new ST-1 sales tax form, which will replace multiple forms (ST-9, ST-8, ST-7, and ST-6) and consolidate their common elements into a single return. The changes are in place for the April 2025 reporting period, with monthly filers seeing changes when they file April returns in May and quarterly filers seeing changes when they file Quarter 2 returns in July.

6️⃣ Nebraska's Department of Revenue has issued guidance prohibiting retailers from advertising that they will pay, assume or absorb sales tax for their customers, or that sales tax will not be added to the selling price. Retailers must pass the full amount of sales tax in retail sales to their customers.

7️⃣ Wyoming has extended its manufacturing sales and use tax exemption by 15 years, pushing the sunset date from December 31, 2027, to December 31, 2042. Effective July 1, 2025, this legislation maintains the exemption for machinery used directly and predominantly in manufacturing tangible personal property in Wyoming, while also aligning the manufacturing use tax exemption with sales tax provisions.

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WHAT E-COMMERCE SELLERS NEED TO KNOW ABOUT TARIFFS 🤔

Is your supply chain feeling the squeeze? Are you worried about how tariffs can impact your business? Well, you’re not alone. The recent wave of tariffs is reshaping how e-commerce companies do business.

But what exactly are tariffs? Tariffs are imposed by a government on goods being imported into a country. They are typically applied as a percentage of the goods’ value or as a fixed amount per unit.

As a business, tariffs can significantly increase your landed costs, which is the total expense of acquiring and delivering a product to its final destination. This means you aren’t just facing increased costs, but also warehousing challenges and supply chain disruption, all of which can impact your business.

But the tariff situation is much more complicated than this. There’s plenty more you need to be aware of, along with advice on how to protect your business.

Get the full scoop on tariffs with sales tax expert Matt Grattan here →

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YOUR QUESTIONS, ANSWERED!

Q (Lola): We are a foreign company but sell into the United States, do we have to pay sales tax?

A: If you have achieved physical or economic nexus within a state, then yes, you are liable to file and remit sales tax in that state.

Learn more about sales tax for international sellers →

Learn more about expanding your business into the US in our recent webinar with SimplyVAT →

Thanks for reading along.

I’ll be back next month with more sales tax shenanigans.

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Until next time’s 🗑 …

Rohit & the Zamp team