Virginia Ruling Explains Nexus for Inventory Stored In-State

A Virginia Ruling of the Commissioner recently explained how the Virginia Department of Taxation would interpret and enforce a new nexus law passed this last year. Remote sellers that have inventory stored in a third party warehouse located in the State are deemed to be dealers in the State. This law appears to be intended to apply to remote sellers using Amazon fulfillment services or the like.

 

Other states may have similar cases in the works; contact your state and local tax professional with questions or for more information.