The Difference E-Commerce Makes (Taxes)

Nov 28, 2023

By: Louis J. Terminello, Esq. and Jaci P. Flug, Esq.

Licensees such as restaurants, liquor stores, grocery stores, and wineries are increasing their use of e-commerce ordering platforms to connect with new consumer markets. Most licensees engage with more than one platform. Licensees doing diligence on platforms must consult more than alcohol regulations when checking for compliance. Licensees must also examine sales and local tax collection.

Since the Supreme Court case South Dakota v. Wayfair in 2018, forty-eight states have enacted marketplace facilitator laws requiring e-commerce platforms, not sellers, to collect and remit state and local taxes. While state ABC boards once strongly believed that only licensees could collect customer payments of taxes on beverage alcohol, marketplace facilitator laws make no distinction between beverage alcohol and other items. Marketplace facilitator laws are deemed to apply to beverage alcohol sales.

This is a massive adjustment for retailers and wineries who now must track several paths for sales tax collection. Sellers of beverage alcohol must track their in-store sales tax collection, any e-commerce sales done directly by them, and e-commerce sales facilitated by each platform they engage with. Due diligence should also include the way the platform/marketplace collects the tax payments from customers. While marketplace facilitator laws place liabilities for tax payments with the marketplace facilitator, all licensed sellers should aim to avoid lengthy audits.

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 240 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has upheld a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

MEDIA CONTACT

Natalie Villanueva, Director of Marketing
954.333.4308 | [email protected]

This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.

Previous Next

News

The Difference E-Commerce Makes (Taxes)

Share

News & Events

News & Events