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Last Updated: 10/10/2018

Update for Remote Sellers

The U.S. Supreme Court’s June 21 decision in South Dakota v. Wayfair means that remote sellers may be required to collect sales taxes in states where they do not have a physical presence. Due to this decision:
 
  • Remote sellers that sell goods or services into Minnesota from other states must register and begin collecting sales tax in Minnesota no later than October 1, 2018.
  • Minnesota businesses that remotely sell into other states may also need to start collecting sales tax in those states.

Who is affected

The Wayfair decision affects:
 
  • Remote Sellers: Businesses that sell products or services into Minnesota or another state – online or by mail, telephone, etc. – but have no physical presence in that state.
  • Marketplace Providers: Businesses that facilitate a retail sale – whether they receive compensation or not – by both:
    • Listing or advertising the seller’s products.
    • Processing customer payments, directly or through a third party.

For more information