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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, Utah has implemented regulations that require remote sellers with no physical presence in the state to collect and remit sales tax. Specifically, Utah Code Ann. § 59-12-107 outlines the criteria for when an out-of-state seller must collect Utah sales tax. As of the knowledge cutoff in 2023, remote sellers who exceed $100,000 in gross revenue from sales of tangible personal property, services, or subscriptions in Utah, or who have 200 or more separate transactions in the state within the previous or current calendar year, are required to register with the Utah State Tax Commission and collect sales tax. This applies to online retailers and other remote businesses that meet these thresholds, ensuring that they contribute to the state's tax base despite not having a physical presence in Utah.

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Taxes

Wayfair and remote sellers

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Taxes

Wayfair and remote sellers

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