Minnesota Remote Seller Guidance

In light of South Dakota v. Wayfair, states are sprinting to release new guidance for remote sellers.  Minnesota released their official guidance on July 25th, 2018 which will require remote sellers to begin collecting sales tax no later than October 1, 2018. 

The highlights of the announcement include: 

  • Remote sellers with no physical presence selling goods or services into Minnesota must register and begin remitting sales tax no later than October 1st, 2018. 
  • The small seller exception provides relief for sellers who:
    • Have 100 or fewer retail sales shipped to Minnesota.
    • Have 10 or fewer retail sales shipped to Minnesota that are under $100,000.
  • The lookback period for the small seller exception is the previous 12 consecutive months. 

The Wayfair ruling also triggered Minnesota's 2017 Marketplace Provider law to go into effect, which means that marketplace providers must begin collecting Minnesota sales tax on behalf of remote sellers no later than October 1st, 2018. 

You can read the full press release from the Minnesota Department of Revenue here.