Amazon's reach into homes and businesses across the U.S. has resulted in a new sales tax law, commonly called the "Amazon tax," that affects any business selling goods in a state where it doesn't have a physical presence.  

This type of pitfall related to e-commerce will be discussed in an upcoming MDM Webcast, How to Avoid E-Commerce Tax Pitfalls.

The Supreme Court ruled last year that companies must collect sales taxes at the time of purchase or file a report on how much their customers are spending and alert them to the potential tax burden they face.

"Large online sellers that don’t collect are now required to send customers a notice every time they buy something explaining that they may owe what’s called a use tax — essentially, sales tax that wasn’t collected at the time of purchase," according to a recent Denver Post article.

A Colorado law that compelled companies to collect sales taxes for internet purchases was the basis for the December Supreme Court ruling, which went into effect July 1.

MDM's upcoming webcast, sponsored by Avalara, will discuss best practices for overcoming these and other pain points that arise when developing an online sales strategy – something most companies don't consider when launching a webstore.

Though implementing e-commerce is challenging enough without considering the tax implications of the online sales that you'll soon start generating, plenty of other pitfalls await those that don't prepare a tax strategy alongside a digital strategy.

In our 60-minute webcast on July 27, Shane Ratigan, content compliance manager, Avalara Inc., will join me to share best practices for maximizing your resources and avoiding the myriad pain points that arise when developing an e-commerce initiative.

Learn more about this timely topic in the free MDM Webcast How to Avoid E-Commerce Tax Pitfalls July 27 at 1 p.m. EDT.