Nevada enacted economic nexus thresholds for remote sellers in response to the Supreme Court’s Wayfair decision.  Originally, there was no established effective date for the legislation.  However, remote sellers should take notice that the Nevada Department of Taxation recently announced when the economic nexus rules would go into effect.  Beginning November 1, 2018 remote sellers who meet the state’s new economic nexus thresholds must begin collecting sales tax.

A remote seller will have economic nexus with Nevada if they have (1) more than $100,000 of annual sales into Nevada; or (2) 200 or more separate transactions into the state in the previous or current calendar year. Any retailer meeting either of these thresholds must register for a Nevada sales tax license. Furthermore, remote sellers must begin collecting tax on the first day of the month that begins at least 30 days after the threshold is met.  For example, if a remote seller has already met the threshold on October 1, 2018, they must register and begin collecting sales tax on sales by November 1, 2018. Sellers who want to be proactive may register and begin collecting and remitting sales tax before they meet the threshold at any time.

Now that Nevada has established an effective date for these new rules, remote sellers who conduct business in the state should be aware. To register to collect and remit sales tax in Nevada, you may do so online via the Nevada Tax Center or the Streamlined Sales Tax Registration System. A qualified tax attorney can assist with the execution of the application and potential questions or concerns that may arise in the process.

Jeanette Moffa is an attorney who concentrates on state and local taxes at Moffa, Sutton, & Donnini, P.A. She is also an adjunct professor and assistant editor to the American Bar Association’s The Sales and Use Tax Deskbook. For more information please call us at 888-966-8216.

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