30 June 2017 Massachusetts Department of Revenue revokes economic sales tax nexus directive, says regulation is forthcoming The Massachusetts Department of Revenue this week issued DOR Directive 17-2, which revokes DOR Directive 17-1 (issued in April, see Tax Alert 2017-607). The revoked Directive, which would have become effective July 1, 2017, asserted a sales and use tax collection duty on internet vendors regardless of whether or not the vendor had physical presence in Massachusetts. Directive 17-2 states that a new economic nexus rule will be proposed in a forthcoming proposed regulation. In addition, Directive 17-2 indicates that the new rule will be similar to the one in Directive 17-1, but will be applied prospectively. EY will be monitoring this development and issue an alert when the proposed regulations are released. Document ID: 2017-1053 |
