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KPMG report: Remote seller and marketplace guidance, sales and use tax (Alabama, Florida, Louisiana, Massachusetts)

KPMG report: Remote seller and marketplace guidance

State taxing authorities continue to issue guidance to implement remote seller and marketplace nexus laws.

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Alabama

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.


Florida

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.


Louisiana

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.


Massachusetts

The Department of Revenue issued a set of FAQs for remote sellers for periods ending before October 1, 2019, and FAQs for remote sellers and marketplace facilitators effective October 1, 2019.

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

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