Key takeaways
- Alaska will remove the 200-transaction threshold for remote sellers starting January 1, 2025.
- Sales tax nexus will now be based solely on $100,000 in annual gross sales, simplifying compliance requirements.
- The change reflects a broader trend toward streamlined and revenue-based tax rules in the digital marketplace.
As of January 1, 2025, the Alaska Remote Seller Sales Tax Commission will eliminate the 200-transaction threshold for remote sellers. This change means businesses will establish nexus based solely on sales volume.
The updated regulations, approved by the ARSSTC Board of Directors in July 2024, require registration only for businesses with gross sales exceeding $100,000 in the current or previous year. This simplifies compliance, focusing on sales figures rather than transaction counts.
Implications for businesses
With the removal of the transaction threshold, businesses will only need to track overall sales, including revenue from online marketplaces. As the 2025 deadline approaches, companies should assess their sales figures to determine registration requirements. Those exceeding the $100,000 threshold must prepare for compliance, while those below may consider deregistration.
This strategic update not only streamlines the sales tax process for remote sellers but also reflects a growing trend toward simplifying tax compliance in the digital marketplace.
Frequently asked questions
What is changing with Alaska’s remote seller sales tax rules in 2025?
Starting January 1, 2025, Alaska will remove the 200-transaction threshold for remote sellers. Businesses will only need to register if their annual gross sales exceed $100,000, simplifying compliance and reducing administrative work.
How should remote sellers prepare for the new Alaska sales tax threshold?
Businesses should review their 2024 and 2025 sales data to see if they meet the $100,000 threshold. Those above the limit must register with the Alaska Remote Seller Sales Tax Commission, while smaller sellers may no longer need to file or remain registered.
