REMOTE SELLERS – WAYFAIR DECISION
States can now require remote sellers to collect sales tax
South Dakota wins Wayfair case at U.S. Supreme Court
The United States Supreme Court ruled in South Dakota v. Wayfair on June 21, 2018, that states can require remote sellers to collect and remit the applicable sales or use tax on sales delivered to locations within their state regardless of whether the seller has a physical presence in the state.
Although there has been no change in the law itself (the decision just overturns a prior decision based on the same law), Nevada along with other states that are members of the Streamlined Sales Tax Governing Board (AR, GA, IA, IN, KS, KY, MI, MN, NE, NV, NJ, NC, ND, OH, OK, RI, SD, TN, UT, VT, WA, WV, WI and WY) have all agreed to apply this ruling on a prospective basis for remote sellers that are not already registered with their state. (Note: Remote sellers that were already registered and collecting the tax or remitting the tax through a third party, such as a marketplace facilitator, are not entitled to a refund of the taxes they previously collected and should not stop collecting through these channels. In addition, if a seller had a physical presence or other legal obligation to collect and remit the tax for a state, this prospective treatment does not apply for that state.)
Proposed Thresholds for Nevada
Nevada will establish thresholds for when a remote seller is required to collect and remit sales tax. Under the proposed thresholds, businesses will be required to register and collect and remit sales tax if the gross revenue of retail sales into Nevada in the prior or current year is greater than $100,000 or the business conducts 200 or more retail sales into the state.
How to Register
Remote sellers can register for all 24 Streamlined member states, including Nevada, by completing just one short and simple online application through the Streamlined Sales Tax Registration System (SSTRS). There is no fee to complete and submit this registration form, which is available at https://www.sstregister.org/. Alternatively, remote sellers can register directly with each state by completing that state’s registration application.
Help is Available
If a remote seller needs help with calculating, collecting, preparing returns and remitting the appropriate sales and use taxes in all of the Streamlined member states, Streamlined has contracts with various certified service providers (CSP). These CSPs can handle nearly all of a remote sellers’ sales and use tax responsibilities. They can register, set up, install and integrate their tax calculation software with the remote seller’s order entry systems to calculate the applicable state and local sales and use taxes, prepare and file the sales tax returns for each state, make the required remittances and even respond to any notices the remote seller receives from the states relating to these taxes. Best of all, this is done at no charge for those states where the seller is a remote seller. To learn more about the CSP program, see the FAQs related to Certified Service Providers at http://www.streamlinedsalestax.org.