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.