Staying Ahead in a Changing Global Compliance Landscape
In today’s rapidly evolving tax environment, staying compliant is no longer just a box to check—it’s a critical strategic function. For direct selling companies operating across states or borders, the complexity of managing sales tax, digital product taxability, and global reporting requirements has increased dramatically. This article summarizes the key takeaways from my recent presentation at theJuice, Staying Ahead in a Changing Global Compliance Landscape,' and offers actionable insights to prepare for the tax changes ahead in 2025 and beyond.
The Expanding Tax Base
Governments are shifting away from traditional revenue models and expanding their tax base to cover previously untaxed goods and services. Louisiana’s move to tax digital goods starting January 2025 is a clear example. Other states are also evaluating how to close gaps without raising sales tax rates, which directly impacts digital sales, training tools, and subscriptions—common in direct selling models.
Retail Rules That Affect Direct Sellers
With over 13,000 sales tax jurisdictions in the U.S. and nearly 100,000 rule changes last year alone, it’s no surprise that direct selling companies face increasing compliance pressure.
New delivery fees like those in Colorado and Minnesota are not classified as sales tax but still require invoice and system updates. Additionally, sales tax holidays continue to be unpredictable, with 39 events in 2024 across 19+ states. For companies promoting bundles or launching campaigns, tax rule shifts can cause last-minute issues and audit risks.
Digital Sales & Global Obligations
As direct sellers move deeper into digital product offerings—like coaching, subscriptions, and mobile apps—they must track evolving tax rules. More than 31 states now tax digital goods and services. Internationally, the EU’s VAT in the Digital Age (ViDA) reform and DAC7 platform reporting mandate a new level of tax responsibility. Even platforms facilitating sales may need to register for VAT, collect tax, and report seller-level data.
E-Invoicing and Real-Time Reporting
Global e-invoicing mandates are expanding despite some delays. Over 80 countries have implemented or proposed e-invoicing rules. Benefits include cost savings, fewer manual errors, and faster tax reporting. For direct sellers shipping globally, this means investing in compliant invoicing tools now, even if mandates haven’t yet taken effect in every country.
Trade and Tariff Changes
August 2025 brings changes that could significantly affect sourcing and delivery costs.
New tariffs on goods from Canada, Mexico, Switzerland, and others—plus the end of the de minimis exemption for all countries—mean higher landed costs and greater complexity.
Companies reliant on small cross-border shipments should prepare to track tariffs and re-evaluate pricing strategies.
Action Steps
Automate tax calculations, invoicing, and reporting wherever possible.
Monitor state and international tax rule changes proactively.
Review your exposure to RDFs, use tax (especially for samples), and digital goods taxability.
Prepare for e-invoicing and VAT requirements in the EU and beyond.
Work with partners who understand the direct selling model and can scale with regulatory changes.
Conclusion
Tax compliance is no longer an isolated task—it’s a dynamic, high-impact business function that affects operations, pricing, and growth. Direct selling companies navigating U.S. and global markets must act now to stay ahead of tax reform. With the right tools and strategies, you can turn complexity into clarity and compliance into a competitive advantage.
References
Avalara. (2025). Tax Changes 2025. Retrieved from https://www.avalara.com/us/en/research/tax-changes.html#form
Avalara. (2025). Trade and Tariff Tuesdays Webinars. Retrieved from https://www.avalara.com/us/en/learn/webinars/trade-tax-and-tariff-talk-tuesdays.html
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