Marketplace Seller State Guidance

 

Many states have enacted Marketplace Facilitator/Provider laws that require the Marketplace Facilitator/Provider to remit tax on sales facilitated on behalf of Marketplace Sellers. The Marketplace Seller may also be required to register and file returns for sales and use tax purposes in that state.  Review the chart below to help determine a state's registration and reporting requirements for a Marketplace Seller.

Are you a Marketplace Seller?  A Marketplace Seller is generally a seller who sells products through a physical or electronic marketplace operated by a Marketplace Facilitator/Provider.

A Marketplace Seller 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. 

A remote seller that sells through a Marketplace Facilitator and also sells products direct to its customers, is required to register to collect and remit sales tax in the state if its sales in that state meet that state’s Remote Seller Threshold.

If you have a physical presence in a state, you are not a Remote Seller and are generally required to register in that state regardless of the amount of sales.

If you know that you will be making direct sales into a state, you may choose to register to collect and remit that state’s sales tax at any time.

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.  

This chart provides you a summary of Marketplace Seller Registration and Reporting Requirements in the 24 Streamlined member states.  For information concerning non-Streamlined states, contact that state directly. 

 

Remote Seller Guidelines

 

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State Marketplace Seller InformationIs the Marketplace Facilitator required to collect and remit sales tax?Is a seller who only sells through a Marketplace required to register and file returns if the Marketplace is required to collect and remit sales tax?Does a remote seller include sales through a Marketplace Facilitator in the seller's Remote Seller's Threshold calculation? If a marketplace seller is required to identify their sales through the marketplace separately from direct sales on a state’s sales tax return, how are those sales reported?

Arkansas
(updated 6/22/2020)

YesNo, a seller that has physical presence may want to register in order to purchase merchandise for resale without payment of tax.No N/A

Georgia

Contact State for Information   

Indiana
(updated 6/22/2020)

Yes

No, unless the marketplace seller has physical presence in Indiana.

No 

 

If a marketplace seller is otherwise required to register for Indiana sales tax due to physical nexus or meeting the remote seller threshold, then the seller should report marketplace sales as if they are exempt sales on the ST-103.

Iowa
(updated 6/22/2020)

YesNo YesSee the example under the “Remote sellers that make marketplace and non-marketplace Iowa sales” section of our marketplace facilitator guidance

Kansas
(updated 6/22/2020)

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

Kentucky
(updated 6/22/2020)

YesNo, if the marketplace facilitator is registered with KY and filing returns.YesNo, the marketplace seller is required to file a separate return for its facilitated sales. 

Michigan
(updated 6/22/2020)

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. 

No YesN/A

Minnesota
(updated 6/22/2020)

Yes, unless there is an agreement between the parties that the marketplace seller is registered to collect MN sales tax. No, if the marketplace seller does not have a physical presence in the state and the marketplace facilitator is required to collect the sales and use tax. 
 
Yes, if the marketplace seller has physical presence in Minnesota.
Yes, all retail sales are included in the calculation.

These sales should be reported in column H “exempt amount” and identified with a “marketplace facilitated SKU” or Exemption Type code indicating marketplace facilitated sales.

Nebraska
(updated 6/22/2020)

YesYes, all remote sellers who exceed a filing threshold must file a Nebraska and Local Sales and Use Tax Return, Form 10.  The seller can claim a credit for any sales taxes collected and remitted by the multi-vendor marketplace platform with respect to such seller.YesWhen reporting sales and tax on the Nebraska Sales Tax Return, Form 10, the marketplace seller must include all Nebraska sales made or facilitated by the business or by a Marketplace Facilitator in their total sales. Marketplace sellers may include in the deduction section sales made through a Marketplace Facilitator that is collecting and remitting sales tax on the remote sellers’ behalf to arrive at Nebraska net taxable sales. Also, on the Form 10, the marketplace seller must report the total dollar amount of their Nebraska sales made through a Marketplace Facilitator in the “Multivendor Marketplace Platform (MMP) Users Only” section of the Form 10.

Nevada
(updated 6/22/2020)

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.NoYesN/A

New Jersey
(updated 6/22/2020)

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. A remote seller that is over the economic nexus threshold, but sells solely through one or more marketplaces must register, but may request to be placed on a non-reporting basis for Sales Tax by completing Form C-6205-ST, since the marketplace facilitator is required to collect the tax on all marketplace transactions. A remote seller that is under the economic threshold is not required to register.  A seller with physical presence in New Jersey that only sells through a marketplace must register, but may request to be placed on a non-reporting basis for Sales Tax by completing Form C-6205-ST, since the marketplace facilitator is required to collect the tax on all marketplace transactions. Yes

N/A

North Carolina
(updated 6/22/2020)

YesNo

Yes, provided the sales are sourced to NC.

N/A

North Dakota
(updated 6/22/2020)

YesNo, if a marketplace seller who only sells through a marketplace facilitator does not have physical presence in the state.   
A marketplace seller who only sells through a marketplace facilitator but has physical presence in the state is required to register.
No

N/A

Ohio

(updated 6/25/2020)

YesNo. As long as all of the sales made by the marketplace seller are reported by and the Ohio tax collected by the marketplace facilitator, the marketplace seller does not need to register for a seller's use tax account or vendor's license. If the marketplace seller chooses to keep their account open and does not file returns, the marketplace seller would receive delinquency notices from the Department.

Yes, marketplace sellers will include all of their sales on Line 1, “Gross sales”, of the UST1 and then include the sales that were made on the marketplace, on which tax was collected by the facilitator, on Line 2, “Exempt sales” (in addition to true exempt sales), if any. 

No, it is not required.

Ohio does recommend that marketplace sellers include all their sales, including those facilitated by the facilitator, on line 1, “Gross sales”, of the Ohio sales tax return, UST 1. Then on line 2, “Exempt sales”, include the sales that were facilitated, and tax collected by the facilitator, in addition to their true exempt sales, if any. 

Oklahoma

OK-Wayfair

OK-Remote Seller
(updated 6/22/2020)

YesA marketplace seller who only sells through a marketplace facilitator but has physical presence in the state is required to register.No, if the marketplace facilitator is collecting Oklahoma tax on behalf of the marketplace seller, the marketplace facilitator sales are not included in the marketplace seller's threshold calculation.

Yes, the marketplace seller reports the gross receipts of all sales on the tax return and may claim a deduction for the sales through the marketplace in which the facilitator collected the tax.   

Rhode Island
(updated 6/22/2020)

YesA marketplace seller who only sells through a marketplace facilitator but has physical presence in the state is required to register.YesN/A

South Dakota
(updated 6/22/2020)

YesYesYesNo

Tennessee
(updated 6/22/2020)

No. There are two situations in which the marketplace facilitator that has met the $500,000 threshold 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.

No, if a marketplace seller does not have physical presence in the state.  A taxpayer with a location or physical presence in Tennessee will need to make purchases for resale.  A Tennessee certificate granting authorization to make purchases for resale is issued in conjunction with registration for Tennessee sales tax.

A taxpayer with a location or physical presence in Tennessee may also be liable for remitting use tax on untaxed purchases.

NoN/A

Utah
(updated 6/22/2020)

YesA marketplace seller who only sells through a marketplace facilitator and does not have physical presence is not required to register.   
 
A marketplace seller who only sells through a marketplace facilitator but has physical presence in the state is required to register.
NoN/A

Vermont
(updated 6/22/2020)

Yes

No, note that marketplace seller may owe Vermont use tax based on physical presence activities. If marketplace seller does owe Vermont use tax, it is required to remit individually. 

YesNo

Washington
(updated 6/22/2020)

YesYes, if the marketplace seller has nexus requiring it to register and file returns for B&O tax.Yes

The marketplace seller reports all of its retail sales on its tax return and may take a retail sales tax deduction for the sales through the marketplace in which the facilitator collected the tax. When taking the deduction, the marketplace seller identifies that it was for facilitated sales. 

West Virginia
(updated 6/22/2020)

Yes

A marketplace seller who only sells through a marketplace facilitator and does not have physical presence in not required to register.

A marketplace seller who only sells through a marketplace facilitator but has a physical presence in the state is required to register.

YesYes

Wisconsin
(updated 6/22/2020)

 

YesNoYes

N/A

Wyoming
(updated 6/22/2020)

YesNoNoN/A