The recent Wayfair case has eliminated the requirement that a business be physically located in a state to be subject to the respective sales and use tax within the state. The landmark decision from the Supreme Court of the United States has prompted responses from states across the country. The Idaho State Tax Commission is currently working to determine how Wayfair affects out of state retailers making their sales to Idaho citizens.

A click-through nexus law became effective July 1st, 2018, requiring out-of-state retailers who meet certain thresholds to collect and remit Idaho sales tax. Specifically, retailers from other states must collect Idaho sales and use tax if (1) the seller has an agreement with an Idaho retailer to refer potential buyers to the out-of-state seller for a commission that is paid on each resulting sale, and (2) total sales to Idaho buyers through these agreements exceed $10,000 in the preceding 12 months. Qualified referrals include website links, written or oral presentations, or similar third-party purchase opportunity.

To register to remit sales and use taxes in Idaho you will need to file Form 850-U.  Instructions on filing this form can be found here.  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.