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This guide provides an overview of Sales Tax in Illinois, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Illinois.
billion in combined sales tax revenue is collected annually in Chicago, more than any other U.S. city.
The following conditions might establish a physical nexus in Illinois:
Illinois taxes digital goods and SaaS because they are treated as tangible property or taxable services.
Illinois uses destination-based sourcing for remote sales (effective Jan 1, 2025). Apply the 6.25% state rate + all applicable local rates for the customer’s delivery location. Total rates may reach up to 11%.
Register online through MyTax Illinois via the REG-1 process; approval is immediate, though full processing may take 2–4 days, and there is no registration fee. Paper Form REG-1 is also available for manual registration.
Once registered, charge the correct combined state and local rate based on destination sourcing (for remote sellers), include tax on invoices, and remit through MyTax Illinois. Electronic filing is required except in special cases.
Shipping is taxable when it is part of the selling price or not separately stated. If separately stated and optional, it is generally exempt.
Yes. Marketplaces must collect and remit tax on behalf of sellers, and marketplace sales are excluded from economic nexus calculations for individual retailers.
Yes. Certain buyers (e.g., nonprofits, resellers) may use exemption certificates. Illinois provides ST-1 forms and an online certificate verification tool to confirm exemption validity.
Conferma and VAT IT partner to streamline VAT recovery on hotel spend Upcoming integration connects hotel invoice collection with VAT reclaim processing, helping corporate travel, finance and tax teams remove friction and reduce manual administration. MANCHESTER, UK, 4 November 2026 – Conferma, the global leader in virtual card technology for business travel, today announced a […]
Shopify Just Stopped Filing Your Sales Tax. Now What? Shopify Tax files its last returns for sales made up to 31 December 2026. Here is what that means for your store, and why the right replacement is more than a cheaper return. Switching Offer Sign up before 31 January 2027 and your first three months […]
VAT Split Payment: How It Works and Where It Applies VAT fraud costs EU member states billions each year. One of the tools governments have introduced to address it is the split payment mechanism, a system that separates the VAT portion of a transaction from the net price at the point of payment, directing it […]
Digital Services Tax vs VAT on Digital Services: What’s the Difference Most businesses selling digital services across borders are already familiar with VAT. Fewer are prepared for a second, separate tax obligation sitting alongside it: the digital services tax. DST and VAT on digital services are not the same thing. They are calculated differently, […]
Colorado Is About to Tax SaaS. Here Is Why the Local Layer Is the Hard Part. Governor Jared Polis signed House Bill 26-1223 into law on 4 June 2026. From 1 January 2027, Colorado state sales and use tax will apply to computer software however it is delivered, including SaaS subscriptions, downloaded software and mobile […]
Spain’s e-Invoicing Landscape Changes Again: VERI*FACTU Postponed as Mandatory B2B e-Invoicing Moves Towards October 2027 Spain has taken two important steps in the development of its digital invoicing framework. On the one hand, the Ministry of Finance has announced plans to postpone the outstanding obligations under the invoicing software rules commonly associated with VERI*FACTU until […]
Can You Reclaim VAT on Corporate Events When Family Members Are Invited? Most finance teams already know that VAT reclaim on corporate events is a complicated area. What is less well known is what happens when a corporate event extends beyond employees to include their families. Does inviting partners and children to a company away […]
Where did that invoice go? Sage Intacct customers won’t have to ask anymore Every finance team that sells across borders knows the feeling. You’ve issued the invoice, the work is done, and now you wait. Did it arrive? Did the local tax authority accept it? Is it sitting in a queue somewhere waiting to be […]
eezi by VAT IT and Consilio.io: SAP Concur e-Invoicing Partnership Every Business is Also Somebody Else’s Supplier A finance team running SAP Concur usually thinks of e-Invoicing as an incoming problem. A supplier issues something and Concur Invoice has to make sense of it. But that same business is also a supplier to somebody […]
When You Need an Intra-Community VAT Number and How to Get One If your business buys or sells goods and services across EU borders, intra-community VAT is something you will need to understand. It is not the same as domestic VAT, and the rules around registration, invoicing, and reporting work differently from what most businesses […]
This guide provides an overview of Sales Tax in Illinois, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Illinois.
billion in combined sales tax revenue is collected annually in Chicago, more than any other U.S. city.
Illinois uses destination-based sourcing for remote sales (effective Jan 1, 2025). Apply the 6.25% state rate + all applicable local rates for the customer’s delivery location. Total rates may reach up to 11%.
Register online through MyTax Illinois via the REG-1 process; approval is immediate, though full processing may take 2–4 days, and there is no registration fee. Paper Form REG-1 is also available for manual registration.
Once registered, charge the correct combined state and local rate based on destination sourcing (for remote sellers), include tax on invoices, and remit through MyTax Illinois. Electronic filing is required except in special cases.
Shipping is taxable when it is part of the selling price or not separately stated. If separately stated and optional, it is generally exempt.
Yes. Marketplaces must collect and remit tax on behalf of sellers, and marketplace sales are excluded from economic nexus calculations for individual retailers.
Yes. Certain buyers (e.g., nonprofits, resellers) may use exemption certificates. Illinois provides ST-1 forms and an online certificate verification tool to confirm exemption validity.
Conferma and VAT IT partner to streamline VAT recovery on hotel spend Upcoming integration connects hotel invoice collection with VAT reclaim processing, helping corporate travel, finance and tax teams remove friction and reduce manual administration. MANCHESTER, UK, 4 November 2026 – Conferma, the global leader in virtual card technology for business travel, today announced a […]
Shopify Just Stopped Filing Your Sales Tax. Now What? Shopify Tax files its last returns for sales made up to 31 December 2026. Here is what that means for your store, and why the right replacement is more than a cheaper return. Switching Offer Sign up before 31 January 2027 and your first three months […]
VAT Split Payment: How It Works and Where It Applies VAT fraud costs EU member states billions each year. One of the tools governments have introduced to address it is the split payment mechanism, a system that separates the VAT portion of a transaction from the net price at the point of payment, directing it […]
Digital Services Tax vs VAT on Digital Services: What’s the Difference Most businesses selling digital services across borders are already familiar with VAT. Fewer are prepared for a second, separate tax obligation sitting alongside it: the digital services tax. DST and VAT on digital services are not the same thing. They are calculated differently, […]
Colorado Is About to Tax SaaS. Here Is Why the Local Layer Is the Hard Part. Governor Jared Polis signed House Bill 26-1223 into law on 4 June 2026. From 1 January 2027, Colorado state sales and use tax will apply to computer software however it is delivered, including SaaS subscriptions, downloaded software and mobile […]
Spain’s e-Invoicing Landscape Changes Again: VERI*FACTU Postponed as Mandatory B2B e-Invoicing Moves Towards October 2027 Spain has taken two important steps in the development of its digital invoicing framework. On the one hand, the Ministry of Finance has announced plans to postpone the outstanding obligations under the invoicing software rules commonly associated with VERI*FACTU until […]
Can You Reclaim VAT on Corporate Events When Family Members Are Invited? Most finance teams already know that VAT reclaim on corporate events is a complicated area. What is less well known is what happens when a corporate event extends beyond employees to include their families. Does inviting partners and children to a company away […]
Where did that invoice go? Sage Intacct customers won’t have to ask anymore Every finance team that sells across borders knows the feeling. You’ve issued the invoice, the work is done, and now you wait. Did it arrive? Did the local tax authority accept it? Is it sitting in a queue somewhere waiting to be […]
eezi by VAT IT and Consilio.io: SAP Concur e-Invoicing Partnership Every Business is Also Somebody Else’s Supplier A finance team running SAP Concur usually thinks of e-Invoicing as an incoming problem. A supplier issues something and Concur Invoice has to make sense of it. But that same business is also a supplier to somebody […]
When You Need an Intra-Community VAT Number and How to Get One If your business buys or sells goods and services across EU borders, intra-community VAT is something you will need to understand. It is not the same as domestic VAT, and the rules around registration, invoicing, and reporting work differently from what most businesses […]
This webinar explains how US businesses can identify and recover foreign VAT, breaking down key concepts like reciprocity and showing where refund opportunities are often missed.