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US Arkansas remote sellers sales tax Jan 2020

Arkansas is to require out-of-state sellers to collect and charge sales tax on transactions with local consumers. This includes foreign e-retailers.

The new legislation also imposes marketplace collection obligations on online platforms which facilitate remote sellers’ sales. The law covers both tangible property (goods) and digital services.

The new rules come into place on 1 January 2020. The following thresholds must be crossed before the tax obligation starts:

  • Sales above $100,000 per annum; or
  • 200 sales transactions in the state.

The imposition of taxing obligations on non-resident sellers follows the 2018 South Dakota vs Wayfair ruling in the Supreme Court. This replaced the physical nexus test with a mere economic nexus hurdle.

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US Wyoming marketplace sales tax collections

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Wyoming is to require marketplaces to collect out-of-state Sellers’ sales tax from 1 July 2019. This is based on the 2019 South Dakota v Wayfair Supreme Court ruling, imposing ‘economic nexus’ sales tax liabilities on sellers not located in a state for the first time.

US New York implements Wayfair Sales Tax rule

January 16, 2019

The New York state tax department published on 15 January 2019 guidance on the immediate requirements for out-of-state sellers to register and charge Sales Tax.

US Texas Sales Tax economic nexus

January 3, 2019

Texas has become the latest US state to implement Sales Tax obligations on out-of-state (non-resident) merchants. This follows the 2018 South Dakota vs Wayfair Supreme Court ruling obliging remote sellers without a presence in a state to charge and remit local Sales Tax.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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