MinnesotaCare Taxes for Remote Sellers
As a result of the U.S. Supreme Court’s 2018 decision in South Dakota v. Wayfair, remote sellers are subject to tax when they sell, deliver, or distribute legend drugs, hearing aids and related equipment, or prescription eyewear into Minnesota.
Remote sellers are businesses that sell products to customers in a state without having physical presence in that state. See Taxable Presence for MinnesotaCare Taxes to determine if you have physical presence in Minnesota.
Remote sellers of hearing aids and related equipment or prescription eyewear are subject to:
- Provider Tax on the gross revenue they receive from the sale of the above items to consumers in Minnesota.
Remote sellers of legend drugs are subject to:
- Wholesale Drug Distributor Tax on the gross revenue received from the wholesale sale or distribution of legend drugs into Minnesota (except for legend drugs sold to other wholesale drug distributors selling exclusively at wholesale, veterinarians, and veterinary bulk purchasing organizations).
- Legend Drug Use Tax on the sale or distribution of legend drugs into Minnesota that are not subject to Wholesale Drug Distributor Tax (such as legend drugs sold to consumers in Minnesota). The tax is on the price the seller paid for drugs delivered into Minnesota.
For more information, see:
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