Designing a 21st Century Taxing Threshold: Some International Implications of South Dakota vs. Wayfair

Document Type

Article

Publication Date

2018

Abstract

On June 21, 2018, the US Supreme Court decided South Dakota vs. Wayfair. It overruled its previous precedents to hold that US states can require remote sellers to collect sales tax when they ship items to in-state purchasers. This decision has some implications for the EU’s current struggle with taxing the digital economy, as well as for the broader international effort to update the international tax rules for the 21st century. Specifically, the decision bolsters the argument for dispensing with the 19th century permanent establishment concept.

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