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Are You Collecting & Remitting Online Sales Tax?
The state of Illinois is taking advantage of The U.S.
Supreme Court’s recent decision in South Dakota v. Wayfair
Inc. to require the collection of online sales tax from
out-of-state retailers.
Added to the
fiscal year 2019 budget implementation bill is the
requirement for online retailers to collect and remit the
6.25% sales tax on all transactions.
All businesses with over $100,000 of online sales in
Illinois, or at least 200 discrete transactions, are
required to collect the tax on all purchases.
The effective date for the implementation of this new rule
was October 1, 2018.
However, a bill introduced in congress by Wisconsin
Congressman Jim Sensenberger would delay that
implementation.
The Online Sales Simplicity and Small Business Relief Act of
2018 would require the following:
-ban states from retroactively imposing sales tax collection
duties on remote online sellers;
-require all states to push back economic nexus
implementation dates to Jan. 1, 2019; and
-establish a small seller exemption, meaning a remote seller
with gross annual receipts below $10 million in the U.S.
isn’t required to collect and remit sales tax.
Follow the progress of The Online Sales Simplicity and Small
Business Relief Act of 2018.
The Streamlined Sales and Use Tax Agreement [SSUTA],
which currently has 24 full member states, simplifies online
sales tax collections by creating uniform rules and
processes for compliance. Illinois is not a member.
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