State taxing authorities continue to issue guidance to implement remote seller and marketplace nexus laws.
The Department of Revenue has issued a set of “frequently asked questions” FAQs addressing the obligations of remote sellers and marketplace facilitators. The FAQs provide that in-state sellers that exclusively sell through a marketplace do not need to register with the Department, but must apply for an exemption certificate. Also, remote sellers and marketplace facilitators are required to collect only the 8% “simplified sellers use tax,” and are not required to collect and remit any additional state and local taxes.
Two bills (Senate Bill 126 and House Bill 159) have been pre-filed in the Florida legislature that, if enacted, would impose a sales and use tax collection obligation on remote sellers and marketplace facilitators with more than $100,000 in sales or 200 or more retail transactions of tangible personal property.
The Sales and Use Tax Commission for Remote Sellers issued a draft Notice of Intent [PDF 222 KB] that proposes to adopt a regulation mandating “electronic filing of all remote seller tax returns and electronic payment of all related sales and use tax” for tax periods beginning on or after July 1, 2020.
Under House Bill 547, the Commission is required to set an enforcement date of no later than July 1, 2020, and to publish a notice of enforcement no later than 30 days prior to the enforcement date of the state’s economic nexus remote seller law.
For periods before October 1, 2019, a remote retailer is required to collect and remit sales and use taxes if the seller had the requisite “in-state physical presence”—generally defined to include having apps and cookies in the state or having relationships with in-state content distribution networks. Also, the remote retailer must meet a sales threshold of more than $500,000 in Massachusetts sales from transactions completed over the internet as well as delivery into Massachusetts of 100 or more transactions.
Beginning October 1, 2019, remote sellers and marketplace facilitators must collect tax on sales of tangible personal property and taxable services if they have Massachusetts sales that exceed $100,000 in a calendar year.
The FAQs will be amended from time to time, and interested taxpayers can register to be automatically notified of future developments.
Read a September 2019 report prepared by KPMG LLP
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.