Nevada to Enforce Economic Nexus Regulation

Effective Date: November 1, 2018

Threshold: $100,000 or 200 or more separate transactions

Measurement Date: In the previous or current calendar year

Includable Transactions: Retail sales; Marketplace sales included towards the threshold for individual sellers

When You Need to Register Once You Exceed the Threshold: Once a remote seller hits the threshold, they must register by the first day of the calendar month that begins at least 30 calendar days after they hit the threshold.

The Nevada Department of Taxation will enforce new requirements for remote sellers to collect and remit sales tax on sales into Nevada, beginning November 1, 2018. The Department introduced a proposed regulation in August 2018 for remote sellers in reaction to the South Dakota v. Wayfair decision. The Department received a final approval on September 27, 2018 from the Nevada Legislative Commission to enforce the regulation.

A remote seller is deemed to have economic nexus with Nevada and will need to register if in the immediately preceding calendar year or the current calendar year:

  1. The gross revenue of the retailer from the retail sale of tangible personal property delivered in Nevada is greater than $100,000; or
  2. The retailer made 200 or more retail sales of tangible personal property for delivery in Nevada

A remote seller is required to register with the Department beginning on the first day of the calendar month that begins at least 30 calendar days after the retailer satisfied either of the thresholds set forth. Therefore, if a remote seller has already met the threshold on October 1, 2018, they must register and begin collecting sales tax on sales by November 1, 2018.

Sellers who do not surpass either of the thresholds can volunteer to register and collect tax at any time as a benefit to their Nevada customers.

Nevada will apply the regulation on a prospective basis for remote sellers that were not already registered with the state. Remote sellers can register with Nevada by completing an online application through the Streamlined Sales Tax Registration System.

For more information, you can visit the Department of Taxation Remote Seller page. (R189-18, Nevada Department of Taxation, effective October 1, 2018).

Posted on October 11, 2018