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Massachusetts DOR revokes directive explaining bright-line sales tax nexus standard for remote internet vendors

On June 28, 2017, the Massachusetts Department of Revenue issued a directive immediately revoking a prior directive issued earlier this year that would have required out-of-state Internet vendors to collect sales or use tax if they met certain sales and transaction thresholds. Under revoked Directive 17-1, which was scheduled to take effect on July 1, an Internet vendor with a principal place of business located outside Massachusetts would have been required to register, collect and remit sales or use tax on its Massachusetts sales if during the preceding year it had over $500,000 in Massachusetts sales and made sales for delivery into Massachusetts in at least 100 transactions.