Do the Marketplace Facilitator Laws Have You Confused As to What You Should Do Next?

06/06/19 • 13 min

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?

Is this something that plagues your mind and would like further clarification? Contact me HERE and get on the phone with me.You can learn more and attend our Free Webinar, "Nexus and What to do NEXT." REGISTER HERE!

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?

Previous Episode

Selling online into the United States Is Easy! At Least Until you Start Reading About Sales Taxes…

Getting into selling your products online into the US using Amazon FBA sounds like a lucrative idea and it can be! As you start looking into what you need to get setup you start reading about sales taxes and you start to get overwhelmed and you don’t know where to begin! This episode is dedicated to all of you international sellers that have decided to start selling in the United States.Additional Questions Answered:

What do I need to know about sales taxes?
Why is sales tax so complicated?
Where do I need to get registered?
Do I need to get registered?
What is and FEIN?
How do I obtain a FEIN?
How do I know where I have Nexus?
Do I have any sales tax exposure?
Are my products taxable?

If you need help please contact me HERE!
If you would like to learn more come to our Free Webinar, "Nexus and What to do Next" REGISTER HERE.

Next Episode

Understanding Nexus? Check... Understanding Taxability? Let's Talk About That.

Once you have determined that you have nexus and where you have nexus we need to talk about what happens NEXT. Before you start registering anywhere and everywhere, you need to determine the taxability of your products or services. It can be as simple as saying all your products are taxable or as complicated as you could possibly imagine.

Additional questions answered:

How to tax or what to tax? What is the right tax rate? What's taxable?
Do a lot of e-commerce sellers who sell items that are tangible property want to know how to tax the items?
How do e-commerce platforms work? Do they set the tax automatically or the sellers should put it themselves? How to manage different tax rates in different states?
Who should collect the tax: platforms or seller? Which items are taxable or nontaxable in different states? Do they need to report the tax?
What happens when you over collect the tax or you are under collecting it? How is the penalty provided?
Does applying codes for the type of item that is selling make things easier or not?
If some items are not taxable in some states, do you need to register your business in the state where the item is not taxable?

Got some worries? Feel free to reach out to me at [email protected]
Learn more at our newest webinar, "Nexus and What to do NEXT." Register Here.