| > If you do not have a physical presence, you generally do not have to collect sales tax for online sales. That was how it stood before the Wayfair ruling. Under Quill Corp. v. North Dakota (1992) and others, the Court had ruled that states did not have the power to force out of state sellers to collect tax for remote sales unless the seller had a physical presence in the state. Wayfair overruled Quill. The Court created a new kind of nexus, an "economic" nexus, and ruled that an economic nexus was sufficient to allow states to force out of state sellers to collect. Merely selling a sufficient volume into a state is sufficient to create an economic nexus. They didn't give any hard and fast rule for deciding what is a sufficient volume, but the state involved in the Wayfair case, South Dakota, was trying to charge tax on any out of state seller that had more than $100 000/year in sales or more than 200 sales per year in South Dakota so we know that is on the "sufficient volume" side of things. The rule for online sales tax in the US is now this: 1. If you sell online to customers in state X, you need to look up that state's economic nexus law to see what their threshold is. Here's a good place for this [1]. 2. If your sales volume is not under the threshold, you need to check to see if that state exempts your particular product or service. If you hit the threshold and there is no exemption, welcome to hell. [1] https://www.avalara.com/us/en/learn/guides/state-by-state-gu... |