Remote Sellers

No, the obligations for a seller that has physical presence in a state to register to collect and remit sales and use tax did not change under the Wayfair decision. The seller needs to check with that state to determine if they are required to collect and remit the state's sales or use tax.

 

A remote seller is generally a seller that does not have a physical presence in a state but who sells products or services for delivery into that state.  Review the state’s remote seller threshold chart and check with each state to determine if you are required to register in that state.      

Registration requirements vary by state.  Contact the state directly to determine your registration requirements. 

If you have a physical presence or other legal obligation to collect and remit sales tax for a state and are not already registered, you should register immediately.

Yes. If you are already registered and collect and remit sales tax or remit sales tax through a third party, such as a marketplace facilitator, you should continue to do so.  

•  Selling in Streamlined States? You can register to collect and remit sales tax in Streamlined States by completing one simple online application through the Streamlined Sales Tax Registration System (SSTRS).  There is no fee to register using the SSTRS.   

Note: Most states state will send you information related to its sales and use taxes.  You are responsible for filing returns with each Streamlined State you register in.

•  Don’t want to register through the SSTRS?  You can register separately for each state by completing each state’s registration form.

•  Selling in a state that is not a Streamlined State?  You will need to register by completing that state’s registration form. 

The Streamlined Sales Tax Governing Board has contracts with Certified Service Providers (CSP) that can handle nearly all of a seller’s sales and use tax responsibilities.  Any remote seller registered through the SSTRS may contract with a CSP. There is no charge for CSP services in the Streamlined Member States where the seller is a remote seller.  (Do you qualify for Free CSP services?)

We recommend you contact the CSP to discuss the services provided under their contract with the Streamlined Sales Tax Governing Board prior to registering.  If necessary, the CSP can register your business for you.  If you register prior to contracting with the CSP, you will be responsible for filing returns until the CSP is ready to provide it's services to your company.

The CSP will provide the services necessary to:

  •  Register a seller in Streamlined Member States
  •  Set-up and integrate the CSP's software with the seller's system
  •  Identify which products and services are taxable
  •  Determine the appropriate sales or use tax rate and calculate the tax due at the time of the sale
  •  Prepare and file the required sales and use tax returns for each of the Streamlined States you are registered in through the SSTRS
  •  Remit the tax to each of the Streamlined Member States
  •  Resolve any notices or audits by any of the Streamlined Member States

To learn more about the CSP program, see Certified Service Providers

If a you have questions related to a specific state’s laws and requirements, please contact that state.   

If the threshold is applied based on “gross sales”, all sales and transactions into the state are included in determining whether the remote seller meets or exceeds the threshold, including sales for resale and other exempt or nontaxable sales.  

For example:
Company A has $400,000 (400 transactions) in total sales to State 1 for the calendar year that are made up of the following:

• $220,000 (220 transactions) of those sales are to wholesalers that provided exemption certificates claiming sales for resale.
• $75,000 (75 transactions) of those sales are to purchasers claiming exemption for purposes other than resale (use in manufacturing (exemption certificate on file, sales to exempt entities).
• $10,000 (10 transactions) of those sales are sales that qualify for product exemptions.
• $95,000 (95 transactions) are taxable sales to purchasers.

Company A has $400,000 (400 transactions) in gross sales for purposes of computing the thresholds.

“Retail sales” are defined in the SSUTA, in part, as any sale other than a sale for resale. Since sales for resale are specifically excluded from the definition of “retail sale,” they are not included in the threshold computation. However, sales that are not taxable because of the provision of an exemption certificate or that are exempt due to a product exemption, such as food in certain states, are included in the computation. 

For example:
Company A has $400,000 (400 transactions) in total sales to State 1 for the calendar year that are made up of the following:

• $220,000 (220 transactions) of those sales are to wholesalers that provided exemption certificates claiming sales for resale.
• $75,000 (75 transactions) of those sales are to purchasers claiming exemption for purposes other than resale (use in manufacturing, sales to exempt entities).
• $10,000 (10 transactions) of those sales are sales that qualify for product exemptions.
• $95,000 (95 transactions) are taxable sales to purchasers.

Company A has $180,000 (180 transactions) in sales that count toward the threshold computation.

“Taxable sales” means all transactions that are (or should be) taxed. Transactions that are not taxed due to the provision of an exemption certificate or other documentation on the part of the purchaser are not included in “taxable sales.”

For example:
Company A has $400,000 (400 transactions) in total sales to State 1 for the calendar year that are made up of the following:

• $220,000 (220 transactions) of those sales are to wholesalers that provided exemption certificates claiming sales for resale.
• $75,000 (75 transactions) of those sales are to purchasers claiming exemption for purposes other than resale (use in manufacturing, sales to exempt entities).
• $10,000 (10 transactions) of those sales are sales that qualify for product exemptions.
• $95,000 (95 transactions) are taxable sales to purchasers.

Company A has $95,000 (95 transactions) in “taxable sales” that count toward the threshold computation.

Each state will make this determination.    State Contact Information

If the threshold is applied based on “gross sales”, all sales and transactions into the state are included in determining whether the remote seller meets or exceeds the threshold, including sales for resale and other exempt or nontaxable sales.  

For example:
Company A has $400,000 (400 transactions) in total sales to State 1 for the calendar year that are made up of the following:

• $220,000 (220 transactions) of those sales are to wholesalers that provided exemption certificates claiming sales for resale.
• $75,000 (75 transactions) of those sales are to purchasers claiming exemption for purposes other than resale (use in manufacturing (exemption certificate on file, sales to exempt entities).
• $10,000 (10 transactions) of those sales are sales that qualify for product exemptions.
• $95,000 (95 transactions) are taxable sales to purchasers.

Company A has $400,000 (400 transactions) in gross sales for purposes of computing the thresholds.

“Retail sales” are defined in the SSUTA, in part, as any sale other than a sale for resale. Since sales for resale are specifically excluded from the definition of “retail sale,” they are not included in the threshold computation. However, sales that are not taxable because of the provision of an exemption certificate or that are exempt due to a product exemption, such as food in certain states, are included in the computation.  

For example:
Company A has $400,000 (400 transactions) in total sales to State 1 for the calendar year that are made up of the following:

• $220,000 (220 transactions) of those sales are to wholesalers that provided exemption certificates claiming sales for resale.
• $75,000 (75 transactions) of those sales are to purchasers claiming exemption for purposes other than resale (use in manufacturing, sales to exempt entities).
• $10,000 (10 transactions) of those sales are sales that qualify for product exemptions.
• $95,000 (95 transactions) are taxable sales to purchasers.

Company A has $180,000 (180 transactions) in sales that count toward the threshold computation.

“Taxable sales” means all transactions that are (or should be) taxed. Transactions that are not taxed due to the provision of an exemption certificate or other documentation on the part of the purchaser are not included in “taxable sales.” 

For example:
Company A has $400,000 (400 transactions) in total sales to State 1 for the calendar year that are made up of the following:

• $220,000 (220 transactions) of those sales are to wholesalers that provided exemption certificates claiming sales for resale.
• $75,000 (75 transactions) of those sales are to purchasers claiming exemption for purposes other than resale (use in manufacturing, sales to exempt entities).
• $10,000 (10 transactions) of those sales are sales that qualify for product exemptions.
• $95,000 (95 transactions) are taxable sales to purchasers.

Company A has $95,000 (95 transactions) in “taxable sales” that count toward the threshold computation.