Effective October 1, 2018, New Jersey is jumping on the bandwagon of states responding to the Supreme Court’s Wayfair case to require remote sellers to collect sales tax when certain economic thresholds are met. In Wayfair, the Supreme Court of the United States quashed the requirement that a company or vendor have a physical presence within a state in order for a taxpayer to be subject to the respective sales and use tax within the state.
Sellers who have a gross revenue of more than $100,000 from sales in the state or 200 or more transactions in the state must collect and remit sales and use tax as of the effective date. New Jersey considers sellers as a business that sells products online, by mail order, or by telephone to a customer located in a state in which the seller has no physical presence. Remote sellers who are collecting and remitting sales tax should continue to do so into the effective date of October 1, 2018.
To register to remit sales tax in New Jersey you will need to be a registered business within the state of New Jersey. The New Jersey complete Business Registration Package includes detailed instructions on how to register. Once registered, taxpayers can file and pay their taxes online or with Form ST-50. 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.