Sales Tax for Remote Sellers

A remote seller is an out-of-state retailer or marketplace provider that sells products to customers in a state, online, or through mail or phone orders, without having a physical presence in that state.

Remote sellers are required to collect and remit Minnesota Sales Tax if they meet certain economic nexus thresholds.

Small Seller Exception

Remote sellers are required to file and collect Minnesota state and local sales tax if their total sales over the prior 12-month period total exceed either:

• 200 or more retail sales shipped to Minnesota
• More than $100,000 in retail sales shipped to Minnesota

A retail sale is one sales transaction. For example, one sale into Minnesota may contain 10 items for one customer. That transaction counts as one retail sale.

Exceeded the Small Seller Exception

If your retail sales exceed the Small Seller Exception, you must register, collect, and remit Minnesota sales tax on the first day of a calendar month that occurs no later than 60 days after you exceed the Small Seller Exception. 

• If you sell through multiple sources, such as a Marketplace, your own website, and other sources, you must determine your total retail sales made into Minnesota from all sources. 
• If your combined retail sales from all sources meets or exceeds the Small Seller Exception you must collect and remit Minnesota sales tax on taxable sales made through your website and other sources that do not collect and remit sales tax on your behalf. 
• If a Marketplace provider collects and remits sales tax on your behalf you do not need to collect sales tax on those taxable sales.

You must continue to collect and remit Minnesota sales tax until at least the last day of the 12th calendar month from the calendar month you started collecting and remitting. 

You may stop collecting and remitting sales tax after you meet all these requirements:

• Notifying the Minnesota Department of Revenue that you stopped soliciting sales from customers in Minnesota
• Verifying you did not meet the thresholds during the 12 calendar months following the calendar month you were required to collect and remit sales tax