California Announces Use Tax Collection Requirements for Out-of-State Retailers

Sovos
December 17, 2018

In response to the U.S. Supreme Court’s decision in South Dakota v. Wayfair, California will soon require certain out-of-state retailers to collect and remit use tax on sales into California. Beginning April 1, 2019, out-of-state retailers are required to collect California state use tax if their sales into California exceed either $100,000 or 200 or more separate transactions during the current or preceding calendar year.

For more information on these new requirements, please click here.

Also beginning April 1, 2019, all retailers, whether located inside or outside of California, are responsible for collecting and remitting California district use tax if during the current or preceding calendar year the retailer’s sales into the district exceed $100,000 or the retailer made sales into the district in 200 or more separate transactions.

For more information on the new requirements to collect district use tax, please click here.

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Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.
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