US Kansas imposes sales tax on remote sellers

Kansas is to oblige out-of-state retailers to charge local sales tax for the first time from 1 October 2019. This includes registering with the state’s Department of Revenue.

This changes the state’s policy of requiring only sellers with a local, physical presence to account for taxes. Following the June 2018 South Dakota v Wayfair ruling at the US Supreme Court, Kansas is now changing this hurdle to a mere economic nexus test. This means making sales to in-state consumers remotely.

Kansas is following most US states which levy a sales tax in switching to the economic nexus test following the Wayfair ruling.

Kansas is, however, not providing a registration threshold. Since it is using pre-existing legislation for the new rules, it is unable to introduce a threshold. Many states typically apply a $100,000 to $200,000 annual sales threshold.