3 ms·
You only have to collect state sales tax if you have a taxable nexus in that state (basically, six figure revenue from that state alone in a fiscal year or a ph
by strombofulous 6y ago
You only have to collect state sales tax if you have a taxable nexus in that state (basically, six figure revenue from that state alone in a fiscal year or a physical presence in that state)
I doubt many non-US companies meet this condition in more than a few states. Hell, I doubt many US companies even meet this requirement (nb, that's why a lot of smaller ecommerce stores don't collect tax). That would be a minimum of $5,000,000 in yearly revenue from the US alone - more than enough to assume that they have at least one accountant on payroll to deal with this.
- tzs 6y agoIn 2018, in the case South Dakota v. Wayfair Inc. [1] the Supreme Court overturned Quill Corp. v. North Dakota and National Bellas Hess Inc. v. Department of Revenue of Illinois, which were the cases that had previously established that remote sellers without a physical presence in a state could tell the state to shove off if it demanded they collect sales tax (or use tax), and upheld South Dakota's law that required remote sellers to pay tax if they has sales of at least $100k or at least 200 transactions. A large number of other states have followed South Dakota's lead, and went with $100k or 200 transactions for their sales tax nexus laws. [1] https://www.scotusblog.com/case-files/cases/south-dakota-v-wayfair-inc/ https://www.scotusblog.com/case-files/cases/south-dakota-v-w...