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:

Kentucky - Standard, retrospectively effective from 1 July 2018 but amnesty until 1 October 2018

New Jersey - Standard, effective from 1 October 2018

Tennessee - Have had a non-enforceable economic nexus in place since 1 January 2017. In the light of the Supreme Court decision the Department of Revenue will now review.

We will of course keep you up to date with developments in other states. 



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