Illinois Issues Guide on Determining Physical Presence for Sales and Use Tax

In January 2025, Illinois issued a sales and use tax guide to make it easier for out-of-state retailers and marketplace facilitators to understand their tax obligations under the state’s laws.

This guide includes:

• A step-by-step process for establishing where a sale is sourced based on selling activities.
• A breakdown of how a sale should be taxed for different purposes.
• Practical examples of how to determine physical presence.

This guide is a key resource for understanding Illinois sales tax rules and when online businesses must register, collect, and remit sales and use tax. (PIO-125, Illinois Department of Revenue, January 21, 2025)