With the passing of the US Supreme Court decision in the South Dakota v. Wayfair, Inc. case on June 1, 2018, you may have become a Remote Seller who is required to collect and remit sales tax to another state.
A “Remote Seller” is an out-of-state business that sells its products to customers in another state using the internet, mail order, or telephone without having a physical presence in that state. If you know that you are or will be making sales of products for delivery into another state and you meet or exceed the threshold for that state, you are required to register to collect and remit sales tax for that state.
The above US Supreme Court ruling determined that the physical presence standard (nexus) is no longer a requirement for a state to impose a sales tax collection responsibility on sellers. This means all sellers need to evaluate if they have a collection responsibility. Many states have enacted economic nexus laws that apply to any business that makes sales into states in which they have no physical presence but meet the state’s sales and/or transactions thresholds.
To help you determine if you have met a state’s sales threshold, click on the link below. It is a link to the Economic Nexus State Guide which provides key information like effective dates, thresholds, and includable (gross vs. retail vs. taxable) sales for out-of-state sellers making sales into states that have enacted economic nexus legislation.
This is general guidance and is not legal advice.
Please contact Hawkins Ash CPAs for assistance.
