E-COM Sales Tax
Do the Marketplace Facilitator Laws Have You Confused As to What You Should Do Next?
Jun 06, 2019
Andrew H. Johnson, CPA and Daniel M. Peisner, CMI
There have been recent changes in the marketplace facilitator laws. There are some parties who sells exclusively on Amazon and are registered in 20+ states and are wondering if they can deregister in the states where they have marketplace facilitator laws.
The answer is, as with all things in taxation, – It depends! It varies in each state.
Two scenarios regarding this have been discussed today as to whether parties should deregister in states with marketplace facilitator laws, or whether they should register at all if they have not done that. Some states give guidance on this while others not. In case you want to deregister you should consider the cost to it.
One word of caution is not all marketplace facilitators are collecting on your behalf.
Additional questions answered:
- What is the situation on the state of Washington with deregistering? What is the BNO tax which is reported on the same combined excise tax return along with the sales tax?
- What is the so-called ‘general excise tax’ on the state of Hawaii?
- In 2020 Amazon will begin collecting and remitting on behalf of its sellers. But if you are buying for resale, will you get a full exemption?
- Do I need or should I deregister in these states, if I am already registered? Do I need to remain registered and still file or not file? Have states given clear guidance on this? Is there a cost to deregister?
- Should I deregister in states which are going to have additional tax beyond the transactional tax that Amazon may be collecting?
- In case I have not registered yet, should I do that?
- What is the scenario for individuals who also sell on other marketplace facilitators platforms? Should they deregister if they sell on Amazon?
- If I am selling on multiple platforms, then can I deregister at least on the states in which Amazon has inventory?
- Once I have nexus, do I have nexus for every state and have to collect and remit the sales tax?
- Most of these state laws require them to notify me when they began to collect and remit taxes, so if I have not been notified or they do not state that they are doing it, do I have to assume that they are collecting on my behalf?
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