Guidance for Remote Sellers and Retailers Making Sales to Illinois Purchasers

Disclaimer:  Recently enacted Public Act 101-0009 includes changes that will be effective January 1, 2020. IDOR will provide additional information and resources as they become available. 

Remote Sellers

A remote seller refers to an out-of-state retailer that sells tangible personal property to Illinois purchasers from an out-of-state location. There are two groups of remote sellers that must collect tax on sales to Illinois purchasers:

1)    Remote sellers with a physical presence in Illinois

Remote sellers with a physical presence in Illinois are required to register with the Department to remit Illinois taxes on sales to Illinois purchasers.

 2)    Remote sellers without a physical presence in Illinois

Remote sellers without a physical presence in Illinois that meet either threshold are required to register to collect and remit Illinois Use Tax for sales of tangible personal property made on or after October 1, 2018. Within the last 12 months, as determined by a quarterly review, the thresholds are

  • cumulative gross receipts of $100,000 or more from sales to Illinois purchasers or
  • 200 or more separate transactions with Illinois purchasers.

Remote sellers seeking to determine whether they must begin collecting and remitting Illinois taxes, should review the resources below to better understand how Illinois law, and registration and filing requirements apply.

Note:  Internet retailers operating in Illinois must register to collect and remit Retailers’ Occupation Tax on items sold to Illinois purchasers.

Retailers

Companies selling to Illinois purchasers from inventory located in Illinois are considered Illinois retailers. They must register to collect and remit Retailers' Occupation Tax.

Internet retailers operating in Illinois must register to collect and remit Retailers' Occupation Tax on items sold to Illinois purchasers.

Retailers seeking more information about Illinois law, registration, filing and remittance requirements should see 86 Ill. Adm. Part 130.

Note:  Internet retailers operating in Illinois must register to collect and remit Retailers' Occupation Tax on items sold to Illinois purchasers. 

Resources