Select your state

Taxes

Wayfair and remote sellers

On June 21, 2018, the United States Supreme Court ruled that a state may impose sales tax collection responsibilities on businesses that have no physical presence in the state (remote sellers). See South Dakota v. Wayfair, 138 S.Ct. 2080 (2018).

Due to this ruling, existing provisions in tax laws in many states immediately became effective and out-of-state businesses became obligated to collect sales taxes (primarily from online sales) and remit them to the states to which the products are shipped.

Following the South Dakota v. Wayfair decision by the U.S. Supreme Court on June 21, 2018, states, including Hawaii, have the authority to require out-of-state sellers, or remote sellers, to collect and remit sales tax on sales made to consumers within the state, even if the seller has no physical presence in the state. This decision has significant implications for online and remote sales. In Hawaii, the Department of Taxation has provided guidance on how remote sellers can comply with the state's General Excise Tax (GET) laws. Remote sellers who exceed certain economic thresholds in terms of sales or transactions in Hawaii are required to register, collect, and remit GET for sales made to Hawaii consumers. This ensures that the state can collect tax revenue from online and remote transactions, leveling the playing field between in-state and out-of-state businesses.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Taxes

Wayfair and remote sellers

Individual & Family Legal Plan

Articles

Hawaii State Code

Hawaii State Code

Taxes

Wayfair and remote sellers

Articles