New Jersey is one of a number of states that has enacted regulations that allow the state to collect sales tax from retailers who sell to New Jersey customers, regardless of whether the seller has a physical presence in the state. These new regulations were made possible after the Supreme Court's decision in South Dakota v. Wayfair Inc., overturning a long established rule that states could only require retailers with a physical presence in the state to collect sales tax from sales to customers located in their state.
Effective November 1, 2018, remote sellers whose sales in New Jersey exceed certain thresholds must register with the state, collect sales tax, and remit the tax to the state. Remote sellers are sellers without a physical presence in the state who sell tangible personal property, specified digital products, or services for delivery into the state by Internet, catalog, or telephone. Remote sellers include online retailers.
Under the new rules, remote sellers must register with the state and collect New Jersey sales tax once their sales for the previous or current calendar year exceed:
Remote sellers do not have to collect sales tax on sales made through a marketplace because the law requires marketplace facilitators, like Amazon, to collect tax on those sales. A remote seller who is above one of the above-mentioned thresholds but only sells through a marketplace must register with the state but can request a non-reporting status.
Remote sellers can register by completing an online application through the Streamlined Sales Tax Registration System, a multi-state system of which New Jersey is a member. Once registered, the remote seller will receive a letter containing filing and payment information. Alternatively, remote sellers can register directly with the state by going to the Division of Revenue and Enterprise Services website and choosing the option “Register as Remote Seller Only.”
For more information, see the New Jersey Department of the Treasury website.