United States

Multistate: First Noncollecting Seller Annual Use Tax Reports Due Soon in Many States

Jan 22, 2018
From KPMG TaxWatch

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Last year, multiple states enacted use tax notice and reporting requirements for remote sellers that do not collect and remit sales tax, with the first annual reporting obligations arriving early this year. In Colorado, Louisiana, Pennsylvania, Puerto Rico, Rhode Island and Vermont, the first annual reports to purchasers are due by January 31, 2018. The first annual reports to the state revenue departments are due March 1, 2018 for Colorado and Louisiana, February 15, 2018 for Rhode Island, and January 31, 2018 for Vermont. Last year certain states enacted notice and reporting laws that also apply to marketplace providers and referrers, including Pennsylvania, Rhode Island, and Washington. In Pennsylvania, remote sellers, marketplace facilitators, and referrers must make their first election to either “collect or report” by March 1, 2018. Failure to file an election will be treated by the Department as an election to comply with the notice and reporting requirements. Rhode Island required marketplace operators to notify the Division of Taxation by January 15, 2018 of the marketplace sellers for whom the marketplace operator collected tax in 2017 and those for whom the marketplace operator did not.

In anticipation of these upcoming deadlines, some state revenue departments have recently issued guidance, including the taxing authorities in Louisiana, Rhode Island, and Vermont. For example, Louisiana Revenue Information Bulletin No. 18-006 explains how to file annual statements to the Department electronically (required for remote retailers with Louisiana sales in excess of $100,000). Rhode Island Advisory No. 2018-03 explains how retail sales facilitators can submit annual reports to the Division using an online “tool.” Vermont has posted guidance on its website specifying that annual reports due to customers and the Department for 2017 must include transactions for the entire 2017 calendar year (despite the law going into effect July 1, 2017). For more information, please contact Harley Duncan at 202-533-3254.

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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.