West Virginia Creates Economic Nexus Provisions

Effective Date: January 1, 2019

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

Measurement Date: Preceding or current calendar year

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

When You Need to Register Once You Exceed the Threshold: Next transaction

The West Virginia State Tax Department has issued an administrative notice containing economic nexus provisions for out-of-state sellers. Effective January 1, 2019, any out-of-state seller who as of July 1, 2018 is not required to collect and remit West Virginia sales and use tax – either through lack of physical presence in West Virginia or because they have not voluntarily agreed to collect and remit the tax – will be required to collect and remit West Virginia state and municipal sales and use taxes on all sales made on and after January 1, 2019 that are delivered into the state if the seller meets either of the following requirements during the 2018 calendar year:

  • Delivers more than $100,000 of goods or services into West Virginia, or
  • Engages in 200 or more separate transactions for the delivery of goods and services into West Virginia

A seller’s responsibility for tax collection and remittance will be determined annually each year thereafter. The requirement will apply for a given calendar year based on the seller’s attainment of either of the thresholds in the immediately preceding or current calendar year. For additional information, visit the West Virginia State Tax Department webpage. (Administrative Notice 2018-18, Remote Sellers and West Virginia Sales and Use Tax webpage, West Virginia State Tax Department).

Posted on October 11, 2018