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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.

In response to the Supreme Court's decision in South Dakota v. Wayfair, New Jersey enacted legislation that requires remote sellers and marketplace facilitators to collect and remit New Jersey sales tax. As of 2018, remote sellers with more than $100,000 in sales or 200 transactions in New Jersey are required to register, collect, and remit sales tax to the state. This applies to sales of tangible personal property, specified digital products, and certain services. Marketplace facilitators, which are platforms that facilitate sales for third-party sellers, are also required to collect and remit sales tax on behalf of the sellers that use their platform. These requirements aim to level the playing field between online and brick-and-mortar businesses by ensuring that sales tax is collected regardless of the seller's physical presence in New Jersey.

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Taxes

Wayfair and remote sellers

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Taxes

Wayfair and remote sellers