5 Retail Tips for Tackling Tax Issues and Improving Bottom Lines

3. Understand that tax rules apply for all your selling channels. Today’s retailers operate in multichannel sales environments — brick-and-mortar, online, catalog/call center and wholesale. Each channel has its own set of complex tax implications. While federal law exempts internet sales from tax, online retailers must collect tax if they have a physical presence in the state where the item is shipped. Interpretation of this law created controversy when Amazon sued the state of New York after being required to collect sales tax because it had affiliates located in the state.