Drop Shipments: What Are They and What’s New Post-Wayfair? On-Demand Webinar

Many different types of businesses use drop shipments and don’t realize that they may be making a huge mistake when it comes to sales tax. You don’t know what you don’t know!

Drop shipments can create sales and use tax collection and remittance issues for all parties involved, whether you’re the seller, shipper or customer. Different states’ treatments of sales tax for drop shipments varies, and there are multiple factors that can alter the tax treatment of the transaction. Not to mention that the South Dakota v. Wayfair decision has brought about changes for drop shipments. As more companies who are not familiar with the rules are registering in more states, the impact to the seller and the customer grows. Most states have flexible rules, but we are seeing shippers enforcing strict rules unnecessarily.

For example, if you’re a seller and your customer asks you to drop ship and you’re registered in the ship-to state but your customer is not: do you have an obligation to confirm if the customer should be registered in the ship-to state? Or, if the state accepts home-state certificates, can you continue to accept the home-state certificates?

These are the kind of post-Wayfair scenarios you might be grappling with. Learn what the true rules are so you can protect your company from unnecessarily paying tax and having to register if you don’t make retail sales.

It’s complicated – that much is clear! But once you learn the rules and patterns to follow for drop shipments, you’ll start to handle these transactions with ease.

This webinar will clarify every stage of drop shipments so you can understand where your company might have sales tax obligations. We will show you how to avoid the most common (and expensive) mistakes people make when dealing with drop shipments. You’ll even learn what you can do to avoid paying the tax on your purchases – legally!

Drop Shipments: What Are They and What’s New Post-Wayfair? is a 90-minute on-demand webinar taught by sales tax expert Diane Yetter of the Sales Tax Institute.

Diane will cover the essential sales tax concepts for drop shipments, common mistakes and how to avoid them, nexus issues that can arise with drop shipments, resale certificate requirements, and more. 

Specifically the webinar will teach you:

• How drop shipments work and the correct sales tax treatment for these tricky transactions.  
• How to define and identify drop shipments so you can recognize them in your company and ensure that you’re handling them correctly. 
• The most common and dangerous mistakes people make with drop shipment transactions, and how to avoid them.  
• The nexus issues that can arise with drop shipment transactions so you’re aware if and when you are creating nexus in a jurisdiction. 
• Resale certificate requirements that can be created due to drop shipment transactions. 
• Post-Wayfair changes that impact drop shipments. 

The course is 90 minutes long and is not eligible for CPE credit.

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