Mississippi Issues Collection Guidance for Remote Sellers

Remote sellers with annual sales in Mississippi exceeding $250,000 should  begin collecting tax no later than September 1, 2018. Mississippi has issued sales tax guidance for online sellers in the wake of the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc.

Mississippi Sales Thresholds

Sellers can determine whether the $250,000 small seller exception is met based on their total sales into the state for the past 12 months. “Total sales” include all sales into Mississippi, including sales:

  • at wholesale;
  • subject to sales and use tax ; and
  • subject to any statutory exemption.

Wayfair Decision

The Wayfair decision, issued on June 21, 2018, struck down the requirement that a vendor must have “physical presence” in a state to be subject to state sales and use tax collection requirements.

Economic Presence Rule

While the Department recently enacted a rule, effective December 1, 2017, that addresses Mississippi’s definition of economic presence nexus, it was not enforcing the rule prior to the Wayfair decision. However, the Department will allow online sellers to begin collection of Mississippi use tax for sales made on or after September 1, 2018, when such sellers register to collect Mississippi tax by August 31, 2018.

Registering in Mississippi

Remote sellers should register for a Mississippi Use Tax Account by September 1, 2018. All online or remote sellers seeking to comply are advised to visit https://tap.dor.ms.gov/_/ to register with the Department.

Sales and Use Tax Guidance for Online Sellers, Mississippi Department of Revenue, August 6, 2018, ¶200-865

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All stories by: CCHTaxGroup