Sovos has put together a marketplace facilitator sales tax collection requirements table to keep marketplace sellers informed of each state’s effective and pending remote sales tax collection legislation and responsibilities based on physical or economic nexus status.
Reminder: Remote sellers may have reporting and/or collection obligations if conducting business through a marketplace. As such, the ability of your tax compliance software to provide always-up-to-date “roof-top” accuracy sales tax rates for any new jurisdictional obligations should be taken into consideration. Also, be sure to work with your out of state suppliers on how to handle invoicing sales and use tax, and make sure any customers with exemptions in economic nexus states have provided up-to-date exemption certificates. Likewise, some states are creating special filing regimes for eCommerce sellers to simplify the filing process, so be sure to check if you’re eligible to avoid errors.
As always – deciding whether or not to register for sales tax in a given jurisdiction is a serious decision – consider involving your accountant or trusted tax advisor if you have any questions or concerns.