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Remote Sellers Guide To Taxes
Online Sellers Tax Guide When Selling on Amazon, E-Bay, Etsy, and more!
After the United States Supreme Court ruling in South Dakota v. Wayfair on June 21, 2018, that remote sellers should collect and remit sales and use tax to the state that has economic nexus in those states. This means, if they are selling products for that state for an amount that certain threshold regardless of the physical presence. Many remote sellers became confused and overwhelmed with the sales tax compliance. The following is simple guidance that may help the remote sellers to comply with the state law and clarify some ambiguous terms, procedures, and technical issues:
Economic Nexus
Remote Sellers
Marketplace Sellers
A marketplace seller is a seller who sells the product, using a physical or virtual marketplace facilitator generally, for delivery to that state, out of which that he does not have a physical presence in that state
Marketplace facilitator / provider
Marketplace facilitator can be at the same time remote seller Several marketplace facilitators such as Amazon, E-Bay, and Etsy started collecting sales tax from customers and reported and paying to the states where the delivery of goods is executed.
To mitigate the burden for remote sellers of the sales tax reporting and payments to the states, a streamlined sales tax governing board was created in March 2000 for the purpose of uniform the sales tax bases and definitions between states, as well as simplify the reporting and the payments of sales tax and guide the remote sellers for the proper applications of Bellas Hess v. Illinois and Quill Corp. v. North Dakota holdings of the U.S. supreme court.
Are you looking for an experienced CPA for Tax Advice When Selling on Amazon, E-Bay, Etsy and More?
The following chart is guide for remote sellers – threshold to report and pay sales tax.
| State | Remote Seller Threshold |
| Alabama | Sales of TPP of more than $250,000 in prior calendar year; No transaction threshold |
| Arizona | Annual gross retail sales or income from online sales into Arizona is more than $200,000 in 2019, $150,000 in 2020 and $100,000 in 2021 and thereafter. |
| Arkansas | Sales exceed $100,000 or 200 transactions during the current or preceding year |
| California | The total combined sales exceed $500,000 during the preceding or current calendar year. |
| Colorado | Taxable sales of more than $100,000 in past calendar year |
| Connecticut | Threshold change: $100,000 or more in gross receipts and 200 or more retail transactions |
| District of Columbia | Had in the previous calendar year or will have in the current calendar year, more than $100,000 of gross receipts from retail sales or more than 200 separate retail sales |
| Georgia | Gross Revenue exceeding $100,000 or 200 or more separate retail sales in the previous or current calendar year |
| Hawaii | $100,000 or more in gross income or 200 or more transactions |
| Idaho | Sales that exceed $100,000 in the current or previous year |
| Illinois | Either cumulative gross receipts from Illinois sales of $100,000 or more, or 200 or more separate Illinois transactions |
| Indiana | Gross revenue exceeding $100,000 or 200 or more separate transactions in the previous calendar year or current calendar year |
| Iowa | Gross revenue from sales of $100,000 in previous or current calendar year |
| Kansas | Remote sellers with no physical presence in Kansas are required to collect and remit the applicable sales or use tax on sales delivered into Kansas, as provided under the constitution and laws of the United States |
| Kentucky | Gross receipts of $100,000 or more or 200 or more sales based on previous or current calendar year sales |
| Louisiana | Deliver more than $100,000 of goods or services into the state or engage in 200 or more separate transactions for the delivery of good or services in the state |
| Maine | Gross revenues from Maine sales of tangible personal property, products transferred electronically, or taxable services exceeded $100,000 or at least 200 separate transactions during the current or previous calendar year |
| Maryland | Gross revenue exceeds $100,000 or 200 or more separate transactions during the previous or current calendar year |
| Massachusetts | Massachusetts sales exceeding $100,000 during current or previous calendar year |
| Michigan | Taxable and non-taxable sales exceeding $100,000 or 200 or more separate transactions in the previous calendar year |
|
Minnesota |
Retail sales of more than $100,000 or 200 or more separate retail transactions in any 12 consecutive months. |
|
Mississippi |
Sales exceed $250,000 for the prior 12 months |
|
Nebraska |
Exceeds $100,000 in Nebraska retail sales or 200 or more separate transactions for delivery into NE in the prior or current calendar year |
|
Nevada |
Gross revenue from retail sales greater than $100,000 or 200 or more retail sales in the prior or current year |
|
New Jersey |
Gross revenue exceeds $100,000 or 200 or more separate transactions in prior or current calendar year |
|
New York |
Gross receipts exceed $500,000 and made more than 100 sales during preceding four sales tax quarters |
|
North Carolina |
Gross sales in excess of $100,000 or 200 or more separate transactions in previous or current calendar year |
|
North Dakota |
Taxable sales of $100,000 in previous or current calendar year |
|
Ohio |
Gross receipts greater than $100,000 or 200 or more transactions in the current or preceding calendar year. |
|
Oklahoma |
$100,000 or more in taxable sales of tangible personal property during the previous or current calendar year. |
|
Pennsylvania |
More than $100,000 in gross sales in the previous twelve months. |
|
Rhode Island |
Gross revenues of $100,000 or more or 200 or more separate transactions in the previous calendar year |
|
South Carolina |
Gross Revenue from sales exceeds $100,000 in South Carolina in the previous or current calendar year |
|
South Dakota |
Gross revenue from sales exceeding $100,000 or 200 or more separate transactions in previous or current calendar year |
|
Tennessee |
The retail sales threshold is $100,000 during the previous 12 months |
|
Texas |
Total Texas revenue of $500,000 or more in the preceding twelve calendar months |
|
Utah |
Gross revenue of more than $100,000 or more than 200 separate transactions during previous or current calendar year |
|
Vermont |
Sales of at least $100,000 or 200 individual transactions during any preceding 12 month period |
|
Virginia |
Gross Retail sales exceed $100,000 or 200 or more separate Retail transactions in the previous or current year |
|
Washington |
Gross retail sales exceeding $100,000 in preceding or current year |
|
West Virginia |
Gross sales of or exceed $100,000 or 200 or more separate transactions in the previous or current year |
|
Wisconsin |
Gross sales exceed $100,000 or 200 or more separate transactions in the previous or current year |
|
Wyoming |
Gross sales exceed $100,000 or 200 or more separate transactions in the previous or current year |
Gross Sales
Taxable Sales
Retail Sales
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