USA - Economic Nexus Updates
Following on from the recent landmark US Supreme Court decision in the South Dakota v. Wayfair case a number of states have announced plans that will require remote sellers to collect sales tax even if they do not have a physical presence.
This economic nexus generally follows the standards proposed in the Wayfair Case, that being remote sellers to register and collect sales tax if they make annual sales of more than USD 100,000 or make at least 200 separate sales of taxable products or services. To follow are the latest announcements:
Hawaii - Standard, effective from 1 July 2018
Minnesota - Standard turnover but 100 separate sales, effective from 1 October 2018
Nebraska - Standard, effective from 1 January 2019
North Dakota - Standard, effective from 1 October 2018
Texas - Physical presence requirement remains for now but a strong expectation the economic nexus standard will be introduced in early 2019
Utah - Standard, effective from 1 January 2019
Wisconsin - Standard, effective from 1 October 2018
We will of course keep you up to date with developments in other states.