After effects of the South Dakota v. Wayfair, Inc. decision swept across the nation and pushed nearly every state to adjust its economic nexus. New Jersey economic nexus rule is fairly consistent with the Wayfair decision, but there are a few differences remote sellers and marketplace facilitators should know. Below, we have highlighted key points in the regulations for organizations.
Enforcement date:
November 1, 2018.
Sales/transactions threshold:
$100,000 or 200 transactions.
Measurement period:
Threshold applies to the previous or current calendar year.
Included transactions/sales:
All sales delivered into the state.
When You Need to Register Once You Exceed the Threshold:
After the threshold is met, but there is a grace period of 30 calendar days.
Summary: For sales made on and after November 1, 2018, a remote seller that makes a retail sale of tangible personal property, specified digital products, or services delivered into New Jersey must register, collect and remit New Jersey Sales Tax if the remote seller meets either of the economic threshold criteria. A remote seller that does not meet either of these criteria does not have to register with the Division of Revenue and Enterprise Services to collect and remit New Jersey Sales Tax.
“Remote sellers are not required to collect and remit Sales Tax on the sale of tangible personal property, specified digital products, or services delivered into New Jersey when sold through a marketplace, because the new law requires the marketplace facilitator to collect and remit Sales Tax on all marketplace transactions,” according to the New Jersey Department of the Treasury. “The marketplace is required to collect and remit tax, regardless of whether the marketplace seller is above or below either of the economic thresholds.”
New Jersey Sales Tax Resources: Reach out to our team for more information on the New Jersey economic nexus details. Also check out our interactive sales tax nexus map for real-time updates on each state.
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Check out our workshop on how to file your New Jersey state sales tax return.
