SALES AND USE TAX INFORMATION FOR REMOTE SELLERS
Effective October 1, 2018
On June 21, 2018, the U.S. Supreme Court overturned the requirement that remote sellers1 must have a physical presence in a state in order to be required to collect that state’s sales tax (South Dakota v. Wayfair). Consistent with Wayfair, effective on and after October 1, 2018, a remote seller that makes a retail sale of tangible personal property, specified digital products, or services for delivery to a location in New Jersey must register, collect, and remit New Jersey Sales Tax if the remote seller meets either of the following criteria:
A remote seller that does not meet the above criteria may voluntarily register with the Division of Taxation (Division) to collect and remit New Jersey Sales and Use Tax. Sellers, including remote sellers that are currently collecting and remitting New Jersey Sales and Use Tax should continue to do so.
The Division will apply the Supreme Court’s ruling in the Wayfair decision on a prospective basis for remote sellers that do not have a physical presence in New Jersey. This prospective treatment does not apply if the seller has a physical presence in New Jersey, or is otherwise legally obligated to collect and remit New Jersey Sales and Use Tax.
To register with New Jersey, a remote seller may visit the Division of Revenue and Enterprise Services website at https://www.state.nj.us/treasury/revenue/taxreg.shtml. Alternatively, since New Jersey is a full member of the Streamlined Sales and Use Tax Governing Board, remote sellers may register for all 24 Streamlined member states (AR, GA, IN, IA, KS, KY, MI, MN, NE, NV, NJ, NC, ND, OH, OK, RI, SD, TN, UT, VT, WA, WV, WI, and WY) by completing one online application through the Streamlined Sales Tax Registration System at www.sstregister.org. Once registered, the remote seller will receive a letter containing additional filing and payment information.
The Division has several Sales Tax publications available on our website; in particular, the Sales and Use Tax Guide will be very helpful in identifying the taxability of many products and services: https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf.
Remote sellers should continue to monitor the Division’s website as additional information regarding this registration and tax collection obligation will be provided shortly.