Marketplace Facilitators and Payment Processors Find Themselves in the Global Tax Compliance Crosshairs – Part II As we discussed in part I, “Marketplace Facilitators and Payment Processors – The New Taxpayers?” an indirect tax trend the past several years is an effort to expand the number of types of businesses
On April 4, 2019, Hawaii Governor David Ige signed SB 396/Act 2 into law. The new law, effective January 1, 2020, establishes marketplace facilitators as the sellers of tangible personal property, intangible property, or services. This is not unusual and is demonstrative of a clear national trend. However, Hawaii has added a unique twist
New Mexico House Bill 6 has been signed into law as Act 270, which changes the definition of “engaging in business” to include persons lacking physical presence in the state (including marketplace providers) who had at least $100,000 of taxable gross receipts in the previous calendar year. Further, where marketplace
On March 26, 2019, Governor Matt Bevin of Kentucky signed HB 354 into law. The law requires that marketplace providers collect and remit Kentucky sales tax on all sales that the marketplace provider either makes on its own behalf or facilitates on behalf of its marketplace sellers, provided that certain
North Dakota now joins several other states in enacting marketplace legislation. Effective October 1, 2019, marketplace facilitators who have either facilitated more than $100,000 in sales or 200 or more separate transactions into North Dakota in the current or prior calendar year will be required to collect North Dakota sales
West Virginia’s Governor Jim Justice recently signed HB 2813 into law which requires marketplace facilitators and referrers to collect and remit sales and use tax if they have $100,000 in annual gross revenue from sales or at least 200 sales transactions in the state, effective July 1, 2019. Marketplace facilitators will also
Marketplace facilitators and payment processors find themselves in the global tax compliance crosshairs. While approaches may differ across the globe, one of the defining trends in indirect tax over the last few years has been the effort to expand the number of types of businesses responsible for collecting tax. However,
On March 21, 2019, Governor Ricketts of Nebraska signed LB284 into law, enacting requirements for marketplace sellers to collect and remit sales and use tax in Nebraska. Under this legislation, sellers will be considered “doing business in Nebraska” when they have 200 or more transactions or sell more than $100,000 in products
The State of Washington recently passed SB 5581 which simplifies economic nexus rules for remote sellers and marketplace facilitators which became effective immediately upon signing by the governor on March 15, 2019. The legislation eliminates the 200 sale threshold for economic nexus and codifies the $100,000 in annual sales threshold based on cumulative gross
The New York State Department of Taxation and Finance has issued TSB-A-19(1)S which found that an online marketplace which sold software on behalf of third-party sellers could be viewed as a co-vendor liable for the collection and remittance of sales tax on the sales of prewritten software. The opinion states that
As part of the Fiscal Year 2020 Executive Summary, Rhode Island Governor Gina Raimondo, proposes imposing a sales tax on digital downloads of videos, music, and books. Additionally, the summary proposes the elimination of a loophole that allowed online third-party marketplaces to avoid sales tax. At this time, there is no further legislative language
Following the decision of the U.S. Supreme Court in South Dakota v. Wayfair, the Minnesota Department of Revenue has provided preliminary guidance on their plans to tax remote sales. The plan is that by October 1, 2018, remote sellers conducting direct sales will be required to register, collect and remit tax for
Oklahoma recently passed a law intended to capture sales and use tax for purchases over the internet. The new law, passed as House Bill 1019XX, requires remote sellers and marketplaces to either register for and collect Oklahoma sales tax at the time of sale; or both (a) provide detailed notices
Comprehensive software suite provides customizable, always-on solutions for tax determination, e-invoicing and filing (ATLANTA – April 30, 2024) Sovos, the always-on compliance company, introduces its Indirect Tax Suite, a comprehensive, integrated solution to modernize how companies meet global indirect tax obligations. Part of the Sovos Compliance Cloud, the Indirect Tax
Sovos Indirect Tax Suite The only complete, global tax technology solution for VAT and SUT determination, e-invoicing, and filing. Learn more Powering more than 11 billion compliant indirect tax transactions, across 19,000 global tax jurisdictions each year Get Always-On Tax Compliance. Everywhere You Do Business. Part of the Sovos Compliance
Pursuant to Instruction No. 0339 as published by the Congolese Ministry of Finance, Budget, and Public Portfolio on March 18, 2024, non-resident suppliers of electronic services in the Democratic Republic of the Congo to both registered and non-registered customers are now required to register, collect, and remit VAT. Online marketplaces
Enhanced program provides access to the industry’s only complete platform for tax compliance and regulatory reporting (ATLANTA – April 15, 2024) Sovos, the always-on compliance company, today announced enhancements to its Sovos Partner Network program, further elevating its commitment to transform compliance from a business requirement into a force
Sovos, the always-on compliance company, today announced a joint business relationship with the Belgian PwC Firm PwC Business Advisory Services bv/srl (hereinafter: “PwC”), leveraging the companies’ complementary tax and advisory service expertise and solutions to address vital e-invoicing and e-reporting needs. Through this joint business relationship, Sovos and PwC clients