Understanding the New Jersey Economic Nexus Details

Erik Wallin
November 13, 2020

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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Erik Wallin

Erik Wallin is a Senior Tax Counsel on the Tax Research Team at Sovos Compliance. Erik has been with Sovos Compliance since 2011, and his main areas of focus are on U.S. Transaction Tax Law which includes special expertise in the taxation of technology and the taxation mechanisms that apply throughout the Colorado home rule jurisdictions. Erik is a member of the Massachusetts Bar, has a B.A. from York College of Pennsylvania, a J.D. from New England School of Law, and an LL.M. in Taxation from Boston University.
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