Black Friday could mean new tax liabilities for sellers

This week’s Black Friday and Cyber Monday could tip many online sellers over the EU VAT thresholds obliging them to register and collect local taxes for the first time warns tax technology company Avalara.

EU sellers into the US also run the risk of going over remote seller sales tax thresholds. The latter has become a hot tax zone after the 2018 Wayfair US Supreme Court ruling which has enabled almost 45 states to tax EU and other foreign sellers for the first time. 

Richard Asquith vice president global indirect tax at Avalara said: ‘The tax authorities in the EU and US have been investing heavily on staff and analytic software to spot sellers who have passed these thresholds. A number – including Germany France Italy and Austria – are requiring marketplaces to report sellers’ transactions in detail. In the US similar marketplace responsibilities...