Remote Sales Tax

Remote sales tax refers to the tax law that requires online retailers to collect and remit sales tax based on the buyer’s location, even if the seller doesn’t have a physical presence there. Previously, tax was only charged if the seller had a physical store or office in the state. Changes like the Supreme Court’s 2018 decision (South Dakota v.wayfair) have expanded this, meaning more online sales are now taxed according to the buyer’s state rules. This ensures that states collect revenue on sales made within their borders, regardless of where the seller operates from.