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Illinois Updates Sales Tax Nexus Rules for 2026: Key Changes for Retailers and Service Providers

  • Illinois updated its sales and use tax guidance for 2026, expanding the definition of “sale” to include goods transferred as part of service transactions.
  • The term “seller” now covers both retailers and service providers.
  • Out-of-state businesses must collect Illinois sales tax if they have a physical presence or exceed $100,000 in sales to Illinois customers.
  • The guidance clarifies sourcing rules, requiring sales to be evaluated individually to determine tax rates.
  • Businesses, especially service providers, should review their Illinois tax obligations due to these changes.

Source: vatabout.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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