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