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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.

Following the South Dakota v. Wayfair decision by the U.S. Supreme Court on June 21, 2018, Tennessee, like many other states, updated its sales tax collection requirements to include remote sellers. This means that businesses without a physical presence in Tennessee are required to collect and remit Tennessee sales tax if they meet certain criteria. The criteria for remote sellers to collect sales tax in Tennessee include having a certain amount of sales revenue from Tennessee residents or conducting a certain number of transactions within the state. This rule applies primarily to online sales, and it is designed to level the playing field between out-of-state online businesses and brick-and-mortar businesses within Tennessee. Remote sellers that meet these criteria must register with the Tennessee Department of Revenue and comply with state tax collection and remittance laws.

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Taxes

Wayfair and remote sellers

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Taxes

Wayfair and remote sellers

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