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US Kansas imposes sales tax on remote sellers

  • Aug 12, 2019 | Richard Asquith

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.

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 won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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