Streamlined Sales Tax (SST) is an association of states that have agreed to work together to simplify sales tax compliance. By establishing uniform product definitions and best practices for simplified sales tax administration, SST works to iron out the complications that a business with a national presence will face.
Last year, the SST agreement was amended to expand relief eligibility for thousands of direct-to-consumer shippers of alcoholic beverages to 24 Streamlined Member States. In response, tax software provider Sovos updated its Sovos ShipCompliant platform, enabling eligible direct-to-consumer (DtC) shippers to access the full range of benefits available to remote sellers under the latest SST agreement. Updates include expanded audit protection and compensation for the cost of calculation and remittance services.
One of only four Certified Service Providers (CSPs) already helping remote sellers manage their sales tax obligations across many states at once, Sovos is among the first to roll out added support for the thousands of beverage alcohol companies that now qualify for SST relief.
What this means. Before the latest agreement, DtC alcohol producers were ineligible due to state laws forcing them to register, collect and remit sales tax as a requirement for their shipping license. For DtC sellers using ShipCompliant AutoFile and an integrated front-end partner, eligibility for SST relief is now determined by annual sales volume requirements and no physical nexus in each SST state.
“Long before South Dakota v. Wayfair, direct-to-consumer alcohol shippers were dealing with the tax burdens and complexities that other remote sellers are now facing. But until recently, they could not receive the full range of benefits available to other businesses in Streamlined member states,” said Larry Cormier, vice president, general manager, Sovos ShipCompliant. “Now, using our fully-approved CSP platform to ship their goods into Streamlined states, sales tax compliance is one less headache alcohol producers have to worry about.”
While CSP certification is open to all tax technology providers, only a small handful have opted to participate in the rigorous process set out by the SST Governing Board, which requires a comprehensive review of both technology and tax content. As a benefit of this certification to customers, CSPs like Sovos ShipCompliant become the primary contact and assume greater responsibility in the event of an audit, relieving the customer of a time-consuming and expensive process.