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Massachusetts DOR announces bright-line sales tax nexus standard for remote internet vendors

On April 3, 2017, the Massachusetts Department of Revenue issued a directive advising taxpayers that it has adopted an administrative bright-line rule that will require out-of-state internet vendors to collect sales or use tax if they meet certain sales and transaction thresholds. Under the rule, which is effective July 1, 2017, an internet vendor with a principal place of business located outside Massachusetts will be 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 or made sales for delivery into Massachusetts in at least 100 transactions.