Tuesday, January 8, 2019

Out-of-state Online Retailers Now Required to Collect California Sales Tax

As a result of the U.S. Supreme Court's Wayfair decision, starting 2019, California will require remote sellers with no presence in the state to register and collect and pay over to the state sales taxes (technically, "use tax") on sales made to California consumers. This requirement will apply if the seller has made 200 or more transactions, or $100,000 or more in sales, into California in the preceding calendar year.

Other states are also rolling out similar requirements, so California businesses selling tangible goods to consumers in others states will need to be aware of any out-of-state filing requirements.