Sales Tax Rhode Island?
Just received this email:
"Under a new Rhode Island state law, Amazon is required to disclose to the Rhode Island tax authority the following information about sellers who made sales to Rhode Island customers in 2017:
Seller contact information (name and address).
To comply with this obligation, we plan to provide your information to the Rhode Island Department of Revenue by February 15, 2018."
Was I supposed to be collecting sales tax for RI? Our Nexus is in CA. I’ve only specified to collect in CA.
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Business Reports is going to need a new category. “Sales By State,” or is this category already available and I just can’t find it?
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I’m guessing RI is wanting names & addresses of RI residents who made purchases outside of RI. Easier to collect from residents than non-resident sellers. RI will likely wait to see if residents fill use tax returns and if not, send out notices based on info. collected from out of state sellers.
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On the other hand, if Amazon was required to collect sales tax on RI sales, and they didn’t, why not?
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That doesn’t seem so clear to me Funky. Take a look at this article:
Quoting from it:
In his opinion, Justice Kennedy wrote that it was time to reconsider the 1992 Quill vs. North Dakota Supreme Court decision, which opponents of e-fairness usually cite when arguing that states have no right to require remote sellers to collect and remit sales tax unless those sellers have a physical presence in the state.
Looks like things are starting to change real fast.
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From the research I did, seems to me there are NO fulfillment centers in RI, so businesses can NOT be considered a business nexuses in that state. If so, why would I be required to charge sales tax to customers in RI? I have nothing to do with the state!
Does anyone know where you can download a report of your sales by state?
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The Rhode Island tax law only requires online sellers to collect sales tax if their income exceeds $1,000,000.
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Straight from Rhode Island’s website. They don’t care if you have a Nexus in their state or not.
It will be interesting because their law contradicts Quill vs North Dakota
We abide by our state law of collecting taxes in the state we operate in as that is the only Nexus we have. How one state can set up a law that goes against another states law will be an interesting argument in a Federal Court.
