A recent decision by the U.S. Supreme Court has caused Minnesota to require remote sellers with no physical presence, such as online and mail-order companies, to collect and remit the applicable sales or use tax on sales delivered to locations within their state.
The Minnesota Department of Revenue will require remote sellers and marketplace providers facilitating sales into Minnesota to begin collecting sales tax no later than October 1, 2018.
Minnesota law requires all sellers to collect sales or use tax to the extent allowed under the United States Constitution.
Minnesota has a Small Seller Exception, which does not require remote sellers to collect sales tax until their sales during a period of 12 consecutive months total either: 100 or more retail sales shipped to Minnesota or 10 or more retail sales shipped to Minnesota that total more than $100,000.
Minnesota law also requires certain marketplace providers to collect and remit Minnesota sales tax on all taxable retail sales made into Minnesota facilitated by the marketplace.
Remote sellers do not need to collect sales tax when a marketplace provider is collecting and remitting.
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