Alaska Removes Sales Tax Transaction Threshold

As of January 1, 2025, the Alaska Remote Seller Sales Tax Commission will eliminate the 200-transaction threshold for remote sellers. This change means businesses will establish nexus based solely on sales volume.

The updated regulations, approved by the ARSSTC Board of Directors in July 2024, require registration only for businesses with gross sales exceeding $100,000 in the current or previous year. This simplifies compliance, focusing on sales figures rather than transaction counts.

Implications for businesses

With the removal of the transaction threshold, businesses will only need to track overall sales, including revenue from online marketplaces. As the 2025 deadline approaches, companies should assess their sales figures to determine registration requirements. Those exceeding the $100,000 threshold must prepare for compliance, while those below may consider deregistration.

This strategic update not only streamlines the sales tax process for remote sellers but also reflects a growing trend toward simplifying tax compliance in the digital marketplace.