United States

Mississippi: New Rule Adopts Economic Nexus Standard for Remote Sellers

Nov 13, 2017
From KPMG TaxWatch

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The Mississippi Department of Revenue recently finalized a new regulation that adopts an economic nexus standard for sales and use tax purposes. The rule requires sellers lacking a physical presence in Mississippi to collect and remit use tax on sales of tangible personal property and digital goods, if they have a substantial economic presence in in the state. Under the rule, sellers are considered to have a substantial economic presence if they purposefully or systematically exploit the Mississippi market and have made sales into the state that exceed $250,000 during the prior twelve months. A nonexclusive list of activities that constitute “purposeful” or “systematic” exploitation includes, but is not limited to, advertising to or targeting Mississippi customers through various means, such as emails, texts, online banners, and apps.

The rule becomes effective on December 1, 2017, and applies to all transactions involving the sale of tangible personal property or digital goods occurring on or after that date. However, sellers remain liable for any tax collected, but not remitted, before December 1. Please stay tuned to TWIST for future updates on the Mississippi rule and the ongoing state efforts to overturn Quill.

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.