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Kansas Department of Revenue to Require Remote Sellers to Collect Sales Tax by October 1, 2019

On August 1st, 2019, the Kansas Department of Revenue published Tax Notice 19-04, which discusses Sales and Use Tax collection requirements for out-of-state retailers. The Notice defines a Remote Seller as a retailer who sells tangible personal property and/or services into a state where it does not have physical presence. Kansas will require online and other Remote Sellers with no physical presence in Kansas to collect and remit sales or use tax on sales delivered into Kansas.

Most states requiring Remote Sellers to collect sales tax have a designated sales and/or transaction level threshold. However, Kansas legislature has yet to pass a bill directed towards Remote Sellers since the Supreme Court ruling in the Wayfair vs South Dakota case. Therefore, the Department is leaning on K.S.A. 79-3702(h)(1)(F) for sales tax collection requirements:

K.S.A. 79-3702(h)(1)(F) - any retailer who has any other contact with this state that would allow this state to require the retailer to collect and remit tax under the provisions of the constitution and laws of the United States.

Additionally, Tax Notice 19-04 provides guidance for Marketplace Facilitators who would like to voluntarily collect sales tax. A person who is a marketplace facilitator should contact the Department and enter into a voluntary compliance agreement with the Department.

Remote sellers who are not already registered with the Kansas Department of Revenue must register and begin collecting and remitting Kansas sales and/or use tax by October 1, 2019. The Department will not enforce the collection requirements on Remote Sellers for sales made into Kansas prior to October 1, 2019 according to the notice.

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