Indiana has enacted legislation with marketplace nexus provisions, effective July 1, 2019. Per the legislation, a marketplace facilitator is required to collect Indiana sales tax if the facilitator meets Indiana’s economic nexus threshold of $100,000 or 200 transactions even if the retailer does not have nexus with Indiana.
A marketplace facilitator is considered the retail merchant of each retail transaction that is facilitated for sellers on its marketplace when it does any of the following on behalf of the seller:
- Collects the sales price or purchase price of the seller’s products;
- Provides access to payment processing services, either directly or indirectly; or
- Charges, collects, or otherwise receives fees or other consideration for transactions made on its electronic marketplace
Regardless of whether a transaction was made by the marketplace facilitator on its own behalf or on behalf of a seller, the marketplace facilitator is required to do the following for each retail transaction made on its marketplace:
- Collect and remit the gross retail tax, even if a seller for whom a transaction was facilitated does not have a registered retail merchant certificate or would not have been required to collect gross retail tax had the transaction not been facilitated by the marketplace facilitator.
- Comply with all applicable procedures and requirements as the retail merchant.
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May 16, 2019