Marketplace Facilitator State Guidance

 

 

Many states have enacted Marketplace Facilitator/Provider laws that require the Marketplace Facilitator/Provider to collect and remit sales tax on sales facilitated on behalf of Marketplace Sellers if they exceed certain thresholds. Review the chart below to determine a state's registration and reporting requirements for a Marketplace Facilitator/Provider.

Are you a Marketplace Facilitator/Provider?  A Marketplace Facilitator/Provider is generally a business or person who owns, operates or otherwise controls a physical or electronic marketplace and facilitates the sale of a third-party Seller’s products.  The Marketplace Facilitator/Provider either directly or indirectly through contracts, agreements, or other arrangements with third parties, collects the payment from the purchaser and transmits all or part of the payment to the Seller. 

States may define a Marketplace Facilitator/Provider more narrowly or more broadly than the general definition above.  It is important to review a state’s laws and other published guidance for specific state requirements.

A Marketplace Facilitator/Provider may also be a “remote seller.” A Remote Seller is generally a seller that does not have a physical presence in a state but who sells products or services for delivery into that state. 

If the Marketplace Facilitator/Provider has a physical presence in a state, it is not a Remote Seller and is generally required to register in that state regardless of the amount of sales.

If you are Marketplace Seller making sales through a Marketplace Facilitator/Provider, you may also be required to register and file returns for sales and use tax purposes in that state. See the Marketplace Seller state Guidance for more information.

IMPORTANT NOTE: This is general guidance and is not legal advice. Nothing in this chart overrides an individual state’s laws.  For specific state guidance, contact that state.  If you have questions related to this chart, please contact us.

This chart provides you a summary of Marketplace Facilitator/Provider Registration and Reporting Requirements in the 24 Streamlined member states and some nonmember states. For specific questions concerning your requirements in a state, contact that state.

State Registration Guidelines for:

Remote Sellers

Marketplace Sellers
Marketplace Facilitators

 

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 State Marketplace Facilitator Information

Marketplace Facilitator Compliance
Date

Is the Marketplace Facilitator required
to collect and remit
sales tax?

Marketplace Facilitator ThresholdIs a Marketplace Facilitator required to identify sales made on behalf of marketplace sellers separately from its own direct sales on its return? Does your state allow or require the Marketplace Facilitator file a separate return for any third-party sales it facilitates? Is the Marketplace Facilitator required to provide certification that it will collect and remit tax on behalf of the marketplace seller?

Arkansas
(updated 7/14/2020)

7/1/2019YesAggregate sales exceeding 200 transactions or $100,000NoAllowNo

Georgia
(updated 9/1/2020)

4/1/2020Total value of the sales price of its taxable retail sales sourced to Georgia, combined across all its marketplace sellers and the marketplace facilitator itself, equals or exceeds $100,000 in the previous or current calendar year.YesYesRequireNo
Illinois
(
updated 10/2/2020)
1/1/2021     

Indiana
(updated 7/14/2020)

7/1/2019Yes$100,000 gross revenue or 200 or more separate transactions in the current or preceding calendar year

No, but if the Department requests it, a marketplace facilitator must provide such information to the Department.

For county innkeeper's, or food and beverage taxes, the marketplace facilitator's report must include the name of each business and the money collected by a marketplace facilitator acting on behalf of each business.

Allow

Such reporting must be requested manually using the Department's form BT-1.

No

Sellers may request that a marketplace facilitator provide a ST-105 exemption certificate indicating facilitated sales.

Iowa
(updated 7/14/2020)

1/1/2019YesA marketplace facilitator that makes or facilitates Iowa sales on its own behalf or for one or more marketplace sellers equal to or exceeding $100,000 for an immediately preceding calendar year or a current calendar year.NoAllowNo

Kansas
(updated 7/14/2020)

KDOR is analyzing current Kansas statutes and will update in the future.     

Kentucky
(updated 7/14/2020)

7/1/2019YesGreater than $100,000 in gross sales or 200 or more sales transactions into KY in the previous or current calendar year.

No

The marketplace seller is required to file a separate return for its facilitated sales.

RequireNo

Michigan
(updated 7/14/2020)

1/1/2020

Generally, yes.

Facilitators are not required to collect and remit tax for use tax imposed on telecommunications services or if the facilitator facilitates a sale of hotel rooms/ accommodations if the third-party selling the rooms/accommodations is itself registered for sales or use tax.

Gross receipts exceeding $100,000 in the previous calendar year or 200 or more separate transactions in the previous calendar year.NoNeitherNo

Minnesota
(updated 7/14/2020)

10/1/2018Yes, presuming the marketplace facilitator exceeds the small seller exception, and there is no agreement between the parties that the marketplace seller registered to collect MN sales tax collects the sales tax.More than $100,000 in retail sales or 200 retail transactionsNoAllowNo

Nebraska
(updated 7/14/2020)

4/1/2019YesExceeds $100,000 in Nebraska retail sales or 200 or more separate transactions in prior or current calendar year provided the facilitator is not otherwise engaged in business in Nebraska.No

Allow

Nebraska does require the marketplace facilitator to file sales for any third-party sales it facilitates but does not require the marketplace facilitator to file a separate return to report the third-party sales it facilitates.

No

Nevada
(updated 7/14/2020)

10/1/2019
No

A marketplace facilitator is not required to collect and remit sales and use tax if: 1. they have entered into a written agreement whereby the marketplace seller agrees to assume responsibility for the collection and remittance of tax on sales made through the marketplace facilitator; and 2. the marketplace seller is registered with the Department of Revenue to collect sales and use taxes on retail sales made by the marketplace seller.

$100,000 in sales or 200 transactions

No

The Nevada sales tax return does not have a separate line item to identify sales made on behalf of marketplace sellers.

 

Require

We will set up subaccounts with a location code under the Marketplace Facilitator to allow for a separate return to be filed.

No

A marketplace facilitator is required to collect and remit sales and use tax on retail sales made or facilitated by the marketplace facilitator on its own behalf or for one or more marketplace sellers to customers in this State exceed $100,000 or the marketplace facilitator makes or facilitates 200 or more separate retail sales transactions on his or her own behalf or for one or more marketplace sellers to customers in this State pursuant to AB 445 section 5.  An exception to this is if the marketplace facilitator and marketplace seller enter into a written agreement whereby the marketplace seller assumes responsibility for the collection and remittance of sales and use tax for retail sales made by the marketplace seller through the marketplace facilitator and the marketplace seller has obtained a seller’s permit from the Department.  At such time, the marketplace facilitator will provide the Department a copy of the agreement.

New Jersey
(updated 7/14/2020)

10/1/2018A marketplace facilitator is required to collect and remit Sales Tax on sales made through any marketplace owned, operated, or controlled by a marketplace facilitator, even if the marketplace seller is registered with New Jersey for the collection and remittance of Sales Tax. However, a marketplace facilitator and marketplace seller are permitted to enter into an agreement with each other regarding the collection and remittance of Sales Tax.
A marketplace facilitator is required to collect and remit sales tax on sales made through the marketplace facilitator, even if the marketplace seller is registered with New Jersey for the collection and remittance of sales tax. However, a marketplace facilitator and marketplace seller are permitted to enter into an agreement with each other regarding the collection and remittance of sales tax.

Requests

The marketplace facilitator is requested to file a separate return to report sales facilitated for marketplace sellers.

Requests

The marketplace facilitator is requested to file a separate return to report sales facilitated for marketplace sellers.

No

North Carolina
(updated 7/14/2020)

2/1/2020YesExceeds $100,000 in gross sales or 200 or more separate transactions in prior or current calendar yearNoAllowNo

North Dakota
(updated 7/14/2020)

10/1/2019Yes$100,000 in sales in the current or prior yearNo

Allow

North Dakota will allow the facilitator to file a separate report if the facilitator has a separate North Dakota sales tax account for the facilitated sales.

Yes

Ohio
(updated 7/14/2020)

8/1/2019 (effective date of statute)

9/1/2019 (earliest possible date to register & begin collecting)

YesGross sales greater than $100,000 or 200 transactions in the current calendar year or previous calendar year.

No

Ohio requests marketplace facilitator have two seller's use accounts: one for the remittance of tax the facilitator makes directly; and a second account, which should include a marketplace facilitator indicator, for remittances of tax on sales collected on behalf of the marketplace sellers.

AllowNo

Oklahoma

OK Streamlined Sales Tax
(updated 7/14/2020)

7/1/2018For sales made through the marketplace facilitator's forum by or on behalf of a marketplace seller, the marketplace facilitator is required to elect to collect and remit state and local sales/use tax or meet the notice and reporting requirements outlined in 68 O.S. §§ 1393 through 1395.$10,000 during the immediately preceding twelve-calendar-month periodNoAllowNo certification in addition to the marketplace facilitator’s election to collect and remit Oklahoma sales/use tax on behalf of marketplace sellers is required to be made or submitted to the taxing authority.
Pennsylvania
(updated 9/4/2020)
7/1/2019Yes$100,000NoNeitherYes

Rhode Island

Marketplace Facilitator Laws
(updated 7/14/2020)

7/1/2019Yes$100,000 in gross sales or 200 sales in the immediately preceding calendar yearNoAllow

No

Not required but preferred.

South Dakota
(updated 7/14/2020)

3/1/2019YesCombined marketplace facilitated sales into South Dakota exceed $100,000 in gross sales; OR 200 or more separate transactions in prior or current calendar year.NoAllowMarketplace providers must provide notice to marketplace sellers that South Dakota sales tax is being reported and remitted on all marketplace sales. The notice must include the date the marketplace began complying with South Dakota law. The notice should be conspicuously posted on the marketplace website and provided directly to each marketplace seller.

Tennessee
(updated 7/23/2020)

10/1/2020

Yes. Two situations in which the facilitator  does not collect and remit tax on behalf of all its marketplace sellers. 1) Facilitator receives authorization from commissioner to not collect and remit tax because all its marketplace sellers are collecting and remitting Tennessee sales tax on the sales, and 2) Facilitator and seller (registered for Tennessee sales and use tax with annual gross sales in excess of $1,000,000,000) contractually agree seller will collect and remit the tax and the commissioner is notified.

 

More than $100,000 in retail sales in the previous 12 months

Yes. 
Marketplace facilitators will report and remit the tax collected on the marketplace sellers’ sales under a separate location ID from the location ID used to report and remit the marketplace facilitator’s own sales.  The Department will be publishing more information on its website at: www.tn.gov/revenue

RequireNo
Texas
(updated 9/4/2020)
10/1/2019Yes$500,000NoAllowYes

Utah
(updated 8/14/2020)

10/1/2019YesSales that exceed $100,000 or 200 or more separate transactions in the previous calendar year or the current calendar quarterNoAllowNo

Vermont
(updated 7/14/2020)

6/1/2019YesAt least $100,000 in sales or at least 200 transactions in previous 12 monthsNoAllowYes

Washington
(updated 7/14/2020)

10/1/2018 

(Collection of sales taxes required)

 

1/1/2018 (Election for voluntary collection of tax or use tax notice reporting)

 

See link to marketplace webpage for information on B&O tax

Yes. For specific exclusion see RCW 82.08.010(15)(b)

Effective 1/1/2020, $100,000 in cumulative gross receipts, including gross retail sales, wholesale sales and other gross income including both facilitated sales and its own sales.

Prior to 1/1/2020, $100,000 in gross retail sales, including both facilitated sales and its own sales.

 

See link to marketplace webpage on nexus for B&O tax.

Yes
A marketplace facilitator may generally file separate returns or report all retail sales on one return and take a retailing B&O tax deduction for the sales made on behalf of marketplace sellers. The deduction identifies sales made on behalf of marketplace sellers.
Allow
A marketplace facilitator may generally file separate returns or report all retail sales on one return.
No
A marketplace facilitator is not required to provide certification to DOR. However, a marketplace seller may need to obtain documentation that the facilitator is registered and collecting sales and use tax.

West Virginia
(updated 7/14/2020)

7/1/2019Yes$100,000 in sales or 200 transactions in preceding calendar yearNoAllowNo

Wisconsin
(updated 7/14/2020)

1/1/2020YesIf the marketplace provider is a remote seller, more than $100,000 in gross sales or 200 or more sales transactions in the previous or current year.NoAllow, if reporting agreement executed with WI DOR.Yes
Marketplace provider is required to notify the marketplace seller that it is collecting and remitting tax.

Wyoming
(updated 7/14/2020)

7/1/2019Yes$100,000 in gross sales in Wyoming or 200 individual transactions for delivery into Wyoming during the current or previous calendar year.NoAllowNo