close
Share with your friends

KPMG report: Sales tax obligations of marketplace facilitators (Michigan, Missouri, Florida)

Sales tax obligations of marketplace facilitators

More U.S. state and local governments continue to respond to the U.S. Supreme Court’s decision in “South Dakota v. Wayfair, Inc.”

1000

Related content

Michigan

Legislation requiring marketplace facilitators to collect and remit sales tax was enacted in December 2019. Effective January 1, 2020, a marketplace facilitator that meets statutory economic nexus thresholds is required to collect and remit sales and use tax on all taxable sales made directly by the facilitator or facilitated on behalf of a marketplace seller.

The Michigan Department of Treasury issued a notice and a list of “frequently asked questions” (FAQs) addressing the sales and use tax obligations of marketplace facilitators. The notice provides that the Department will, upon request, waive failure-to-file or deficiency penalties for tax due on sales facilitated by a marketplace facilitator, for returns due on or before April 20, 2020. However, there will be no penalty relief for direct sales made by marketplace facilitators.  The notice also clarifies that the marketplace facilitator is considered to be the taxpayer and has all the rights and obligations of other persons making retail sales, including the ability to claim early payment discounts, the need to maintain exemption certificates, and the need for access to all relevant data. 

Missouri and Florida

Multiple bills that would adopt sales and use tax economic nexus and marketplace facilitator provisions have been pre-filed in Missouri and Florida.

Read a January 2020 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.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal