Navigating Connecticut’s sales tax regulations is crucial for online sellers aiming to operate legally and efficiently within the state. Here are the key requirements online sellers must fulfill to ensure compliance in 2024:

Economic Nexus Thresholds: Online sellers must collect and remit sales tax in Connecticut if their annual gross revenue exceeds $100,000 or they engage in 200+ separate transactions within the state. Monitoring sales data is essential to determine when these thresholds are met.

Marketplace Facilitator Obligations: Platforms like Amazon and Etsy are required to collect and remit sales tax on behalf of third-party sellers who meet the economic nexus thresholds. Online sellers should confirm that their marketplace facilitators are compliant to simplify their own tax obligations.

Sales Tax Permit Registration: Sellers surpassing the economic nexus criteria must register with the Connecticut Department of Revenue Services (DRS) to obtain a Sales and Use Tax Permit. This registration authorizes the legal collection of sales tax from customers.

Accurate Tax Collection: Apply Connecticut’s sales tax rate of 6.35% to taxable goods and services sold to Connecticut customers. Utilize tax automation software to ensure precise calculations and minimize errors.

Timely Tax Remittance: Remit collected sales taxes to the DRS based on your designated filing frequency—monthly, quarterly, or annually. Consistent and timely payments prevent penalties and maintain good standing with tax authorities.

Comprehensive Record-Keeping: Maintain detailed records of all transactions, including sales data and taxes collected. Organized documentation is vital for accurate reporting and audit preparedness.

Awareness of Tax Holidays: Stay informed about potential sales tax holidays, which offer tax-free periods on specific items like back-to-school supplies. Leveraging these opportunities can enhance marketing strategies and boost sales during tax-free events.

Compliance with Additional Fees: While Connecticut does not impose local sales taxes, some municipalities may have regulatory fees or other charges. Ensure awareness of any additional obligations based on your business location.