Understanding Remote Sellers
A remote seller is an individual or business that sells taxable products or services into a state through telephone, mail order, or the internet and does not have physical presence in that state, but instead meets specific sales and/or transactional thresholds.
What Revenue Administrative Bulletin (RAB) explains sales and use tax nexus standards for remote sellers? RAB 2021-21 explains sales and use nexus standards for remote sellers and replaces RABs 1991-01, 2015-22, and 2018-16.
What gives a remote seller nexus with Michigan that requires it to register and report and pay sales or use tax to Michigan?
Remote Selling Components
The components of remote selling are similar to those for face-to-face selling. However, the major difference is the use of tools that are used for making virtual sales.
- What are the problems that your product/service can solve?
- Who is your target customer?
Remote Sellers in Texas
What is a remote seller in Texas?
- Remote sellers are businesses that don’t have a physical presence in a state but deliver services or products to customers in that state. In Texas, your business is considered a remote seller if you sell products or services.
- If a remote seller is below the $500,000 threshold, stored marketplace provider inventory in Texas does not require the remote seller to get a permit if the marketplace will act as the seller for tax collection.
- Remote sellers have Texas tax collection and reporting obligations if they have economic nexus in this state.
When is the effective date for economic nexus in Texas? Are they providing new simplified sellers use tax at a single rate?
If you have any significant level of sales at all in Texas, do you have a responsibility to collect not just the state tax but other taxes as well?
Many states have enacted economic nexus laws that require remote sellers to collect and remit sales tax if they exceed certain thresholds.
If you are a remote seller and your sales of products for delivery into a state meet or exceed the threshold for a state, you are required to register to collect and remit sales tax for that state.
While there have been questions about whether registering for sales tax in Texas would create a Texas Franchise Tax filing…
Marketplace Facilitator vs. Remote Seller
What is the difference between marketplace facilitator and remote seller? Sellers have to ask is if they are a remote (marketplace) seller or are they a marketplace facilitator. Many sellers wonder what the difference is between remote fulfillment vs marketplace expansion, so we took on the task of creating a quick guide to solve this common question. These remote selling elements would consider things like changes to the sales process and digital tools to enable sellers to engage outside of the real-time conversation. There is much more work and training needed to help sellers execute asynchronous selling activities. Increasingly, these ‘away from the table’ activities represent the best way sellers can differentiate and deliver value to buyers.