A new “click-through” nexus law, effective July 1, 2018, requires certain out-of-state retailers to collect Idaho sales tax on their sales to Idaho customers.
Nexus Conditions
Out-of-state retailers must collect the tax and forward it to the Idaho State Tax Commission if:
- the out-of-state seller has a commission agreement with an Idaho retailer to refer buyers to the seller; and
- total sales to Idaho buyers through these agreements exceed $10,000 in the preceding 12 months.
Qualifying referrals include:
- website links;
- written or oral presentations; or
- any other similar third-party purchase opportunity.
Impact of Wayfair Decision
The Commission is currently determining how the U.S. Supreme Court’s recent decision in South Dakota v. Wayfair, Inc. affects out-of-state retailers making sales to Idaho citizens. The Wayfair ruling upholds a South Dakota statute requiring out-of-state retailers to collect and forward the tax to South Dakota if the retailer has an economic connection as opposed to a physical presence in that state.
News Release, Idaho State Tax Commission, August 15, 2018
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