16 states have a special provision in their marketplace facilitator laws that put marketplaces on the hook for sales tax collection if the business provides the option to pay with virtual currency to customers, according to Bloomberg Tax data. Marketplace facilitator laws require businesses like Amazon.com Inc. and Etsy Inc. to collect and remit sales and use tax on behalf of their vendors if they cross a specific threshold in the state.
Alabama, California, Idaho, Iowa, Massachusetts, Nevada, New Jersey, North Dakota, Ohio, Kentucky, Rhode Island, Utah, Vermont, Virginia, Washington, and West Virginia currently have provisions that classify a marketplace facilitator as an entity that provides “a virtual currency that buyers are allowed or required to use in order to purchase products from the vendor.”
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Posted Aug. 8, 2019, 1:46 AM