Marketplace Facilitator Tax Law
Effective September 15th, 2020, GearSource.com will be fully compliant with the USA Marketplace Facilitator laws. GearSource.com® is a Marketplace, therefore, the Marketplace Facilitator laws apply to us. A Marketplace Facilitator is defined as an online marketplace that contracts with third party sellers to promote their sale of goods and services through the marketplace. Marketplace Facilitator legislation is a set of laws that shifts the sales tax collection and remittance obligations from a seller to the marketplace facilitator, which in this case is GearSource.
For Sellers, the marketplace facilitator laws mean that GearSource, as your “registered” facilitator, will handle calculating, collecting and remitting sales taxes on behalf of your sales destined to states where the Marketplace Facilitator and/or Marketplace collection legislation is enacted and where GearSource meets the thresholds required for registration. In certain states, local taxes are not included within Marketplace Facilitator Legislation; GearSource is NOT responsible for those taxes.
For Buyers, this means that GearSource is required to calculate, collect and remit Marketplace taxes for all sales into the states we are currently registered, which are marked with a red star on the image below. This is not optional, it’s law and GearSource is required to comply in every state where we have met the threshold in terms of the volume of sales into that state. If you qualify for tax exempt purchases in any of these states, please make sure you have provided GearSource with a copy of your valid exemption certificate. Your certificate must have the same company name and address information as your registered account on GearSource.com. If you ship into different states, you will have to provide valid certificates from each state.
Currently, GearSource is registered in 32 states — as we reach thresholds in other states, we will be required to register, collect and remit taxes in those states as well.
Marketplace Facilitator legislation is currently in effect in the following states, as of July 2020 – GearSource is registered in the states marked with the red star.
Note: GearSource will only collect and remit the sales tax on transactions sold through GearSource.com. Sellers who sell items through their own website are responsible for collecting, remitting, and filing for those sales in your state. It’s important that sellers seek advice from tax professionals to learn more about marketplace facilitator laws in your area and how it affects your sales transactions.
If you have questions, please contact [email protected]