Minnesota sales tax filing update September 2018

What's changing in Minnesota?

Minnesota has passed a law requiring marketplace to collect a remit sales tax on sales facilitated through that marketplace no later than October 1, 2018.

• Both Amazon and Etsy began this on October 1, 2018. 
• Walmart began this on October 2, 2018
• You can view the state's complete FAQ here.

How does this affect me?

According to the state, if you have nexus in Minnesota (due to an actual physical presence in this state or you've crossed an economic nexus threshold etc.) you would still be expected to have a license in this state and file returns as sellers with nexus are expected to do in both both Washington and Pennsylvania.

• You can view the state's complete FAQ here.

I'm a remote seller with no physical presence. What should I do?

If you do not have any physical presence in Minnesota AND:

• You fit the state's definition of a remote seller (you make internet, mail order or telephone sales into the state but have no physical presence in Minnesota) AND
• Your only taxable sales into Minnesota are sold through a marketplace that is collecting and remitting Minnesota sales tax on your behalf AND
• Your sales into Minnesota do not exceed this state's Small Seller Exception (100 sales or 10 sales that combined exceed $100k) THEN
• You won't need to register for a license in this state.

However:

If you are a remote seller AND

• All of your retail sales into Minnesota combined (including sales made through any marketplace, your own website, and through other sources) exceed the Small Seller Exception (100 sales or 10 sales that combined exceed $100k) THEN
• You will need to register to collect and remit sales tax on your non-marketplace sales made through your website and other sources that are not collecting and remitting Minnesota taxes for you.

I still need to file returns in Minnesota. How do I do this without paying double tax on the sales that were collected and remitted by my marketplace?

When you file, you'll include the marketplace sales totals in your Gross Sales Total, but you'll exclude the marketplace sales total from the taxable sales total that you report to the state.  

• If you're enrolled in AutoFile for Minnesota, our system will handle these changes automatically.

How does this affect my TaxJar reports?

Your TaxJar report for Minnesota has been updated to reflect the sales that had tax collected and remitted by Amazon, Etsy and Walmart.

• You'll see this change in Minnesota sales tax reports for periods starting in October 2018 and moving forward.
• The marketplace sales totals in this report are now called out in the marketplace sales row of the report.