USA - Economic Nexus Updates

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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.

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