Multi-State- Another coronavirus twist: Watch your sales tax duties

As the new coronavirus disrupts markets and supply chains, it’s also adding a new layer of concerns for online B2B as well as B2C sellers on top of an already complex set of tax-collection rules across the 45 states plus the District of Columbia that levy sales tax.

Two common areas of confusion are in online marketplace sales and in the sales thresholds for requiring sales tax collection, which can vary widely among states. And with many online sellers developing new product offers and sales strategies as a result of the coronavirus pandemic, they may unwittingly take on tax responsibilities they hadn’t encountered before, Newton-Clarke says.

Most states are now requiring marketplace operators, or “facilitators,” such as Inc. to collect the sales tax for goods sold by third-party sellers on their online marketplaces.

But the state rules for marketplaces as well as for individual sellers vary based on sales volume thresholds. Plus, these thresholds can differ from state to state based on such criteria as dollar value, number of transactions and the use of third-party order-and-delivery apps used in forwarding and fulfilling online orders.

Fore more information: DigitalCommerce360

Digital Commerce 360
By: Paul Demery
April 29, 2020