Where the distributor is based out of his irrelevant. It's where the product is shipped.

No, all these laws are based on where the consumer lives as in where we the distributor ships the product too. Pick the state you live in on the list I provided and that is the law for that distributor no matter where said distributor is located.

We would not "need" to no. if we're projected to hit the hundred thousand in four quarters then I would assume Distributors would start collecting. I would think most of us will just stop doing business in those states to avoid the hassle. The one thing I haven't asked is if we charge our regular state sales tax in our sales do we even have to deal with the tax from other states. So hypothetically if we're reaching the 100K threshold in your state if I just charge Illinois sales tax (where we are located) on your sale I don't have to deal with the Minnesota sales tax. That I'm unsure of.

I'm not overly worried about this except for the couple of States I mentioned above. For the most part most of us won't be hitting these marks there's a couple states that I'm probably close so we'll just have to watch. it is a big pain in the ass. None of these numbers are etched in stone and can ebb and flow and change at anytime. There's also a ton of different dates of when these go into effect or had been in effect. You have no idea the amount of mind-boggling information we have to go through to make sure we're in compliance with this mess. And at these margins? I scratch my head sometimes.

For the most part you're correct. The crappy thing as a distributor is if we go three quarters and we haven't collected the tax on all those sales in your state for example, and now we're going to hit the threshold in your state all that tax that we did not collect will be due. We can't simply go back to you and say oh you owe the tax now. You have no idea that headaches this creates for us. we literally have to monitor every state we do business in now. Some larger Distributors just may choose to start collecting tax in every state there is tax to avoid the possibility of breaking the threshold in that state. I don't know. I do know based on the numbers that we do that there's definitely distributors out there that are breaking these thresholds. Especially those that do a lot of small transactions that will break the 100 or 200 transaction number.

It doesn't matter what state set up shop in..... it matters what state you ship to!

Well, first off this shouldn't even be an issue because there is no US dealer that should be selling you games. It'll only be a matter of time before they get caught if they are. I sold a game to a customer who ended up selling it to somebody and the game ultimately ended up in a European country. Stern came back to me asking for verification that I sold that game in the US to a US citizen. They take that VERY seriously As they should to help protect their dealers in those countries.

Got it. Well, if you are technically an out-of-country resident and they're hitting their threshold I would assume you still don't pay tax because you don't reside in any of the states but that's just speculation and something I would probably have to ask my accountant.

So any tax pro's here wanna give me your take on this? I am reading this that IF we had registered by 3/18 we could have just gone option 2 "Comply with Pennsylvania’s notice and reporting requirements" meaning the purchaser is well notified that they owe the tax and were clear and free? Gotta message into my CPA... but the wording on this page is a bit confusing. I think it means if we plaster the website, the invoice and send an annual report to the PA buyer then were off the hook for the tax and it's still on the buyer?

Option 2 - Notice and Reporting Requirements

If a remote seller elects to comply with the notice and reporting requirements, it must take the following actions starting April 1, 2018:

Post a notice on the sales forum that states:
Pennsylvania sales or use tax may be due in connection with the purchase and delivery of tangible personal property to Pennsylvania individuals and businesses.

The purchaser is required to file a use tax return if tax is due in connection with the purchase and delivery in the Commonwealth.

This notice is required pursuant to the provisions of the Tax Reform Code of 1971. 72 P.S. § 7213.2.

Provide a written notice on all invoices, order forms, sales receipts or similar documents, whether in paper or electronic form, to each purchaser at the time of each sale that states:
Pennsylvania sales tax was not collected on this sale. Therefore, you may be required to remit use tax directly to the Commonwealth on your purchase if the items are subject to Pennsylvania sales tax. Please visit this link to learn more about your use tax obligations under Pennsylvania law.

No statement that sales or use tax is not imposed on a transaction may be made by a remote seller, unless the transaction is exempt from sales and use tax, pursuant to Article II of the Tax Reform Code or other applicable Commonwealth law.

Provide an annual report to the purchaser that states:
A remote seller making an election to comply with the notice and reporting requirements must submit an annual report by January 31 of each year to the purchaser that includes the following.

[Name of remote seller] did not collect sales tax in connection with your transactions. You may be required to remit use tax to the Pennsylvania Department of Revenue. Following is a list by date, type and purchase price of each product, purchased or leased by the purchaser from this remoter seller, and delivered to a location within this Commonwealth.

[Insert list]

https://www.revenue.pa.gov/GeneralTaxInformation/Tax%20Types%20and%20Information/SUT/MarketPlaceSales/Pages/Remote-Sellers.aspx