But to qualify, the trade convention cannot be open to the general public! Washington changed its law to state that a trade show participant that only attends one “trade convention” per calendar year does not establish physical presence in the state and does not need a temporary registration certificate as long as the participant doesn’t make retail sales at the trade show. But keep in mind that many states don’t have any published guidance and therefore the assumption is that this exhibiting activity would create physical nexus. If you plan to attend a trade show sheerly to exhibit and promote your products and don’t plan to make sales, you likely do not need to register or secure a permit in states that have safe harbor days rules. You will need to prepare well in advance if you know you will make sales at the trade show to understand your sales tax obligations for those sales and to secure the correct type of permit and forms. Sales at trade shows are the key determinant for triggering sales tax nexus. If you make actual sales at the trade show or take orders for products delivered later to a state, you are most likely required to pay tax on those sales – but you may only need a temporary permit (more on that below). For example, in Illinois, any portion of a day that a retailer is physically present at an Illinois trade show counts as a whole day – but set-up and tear-down days do not count.Īre you transacting business at the trade show?Įven if you don’t meet the time and monetary limits for trade shows set forth by the state, it doesn’t always mean you’re off the hook for sales tax collection. The Georgia rule reads almost exactly the same as the California rule, setting a limit of $100,000 of net income derived from trade show activities but trade show attendance is limited to 5 days.Īn out-of-state vendor with no presence in Massachusetts other than trade show appearances is not engaged in business in the state unless the vendor solicits orders at trade shows for more than 3 days in a calendar year.įor states that set limits on the number of days, you need to delve into the minutiae of each state’s rule to understand how that state calculates the number of days you have presence. ![]() The retailer did not derive more than $100,000 of net income from trade show activities.The retailer and any of its representatives do not engage in trade show activities for more than 15 days, in whole or in part, during any 12-month period and.The retailer’s sole physical presence is California is to engage in trade show activities. ![]() In California, a retailer is not considered ‘engaged in business in the state’ if:
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