REMOTE SELLERS – WAYFAIR DECISION
Remote sellers are retailers that make sales from locations outside Illinois. If those retailers have sufficient contact, or “nexus,” with Illinois, they are required to register to collect and remit tax on their sales to Illinois purchasers. Until October 1, 2018, registration is required only of remote sellers that have a physical presence in this state.
However, Illinois Public Act (P.A.) 100-587 and the subsequent U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc. created a new type of nexus, in which certain retailers with no physical presence in Illinois that are making sales of tangible personal property to Illinois purchasers must collect and remit Illinois Use Tax.
Remote sellers with no physical presence in Illinois that meet either of the following thresholds must register with the Department to begin collecting and remitting Illinois Use Tax for sales made to Illinois purchasers on or after October 1, 2018:
- the retailer’s cumulative gross receipts from sales of tangible personal property to purchasers in Illinois are $100,000 or more; or
- the retailer enters into 200 or more separate transactions for the sale of tangible personal property to purchasers in Illinois.