Major bummer
Marketplace Facilitator Sales Tax Collection
Marketplace Facilitator Sales Tax Collection
Last Update: December 4, 2020
GunBroker.com will implementing the new Marketplace Facilitator Internet Sales Tax regulations on January 1, 2021. As a marketplace, GunBroker.com will be required to collect and remit sales tax on all sales according to the state law.
What is a Marketplace Facilitator?
A Marketplace Facilitator is defined as an entity that provides a forum for sellers to promote their sale of physical property, digital goods, and services and is compensated for these services. As such, GunBroker.com is deemed to be a Marketplace Facilitator for sellers on the site.
What is Marketplace Facilitator Legislation?
Marketplace Facilitator legislation is a set of laws that shifts the sales tax collection and remittance obligations from the individual seller to the marketplace facilitator. As the Marketplace Facilitator, GunBroker.com will have to calculate, collect and remit state sales tax on sales sold by third party sellers for transactions destined to states where Marketplace Facilitator and/or Marketplace collection legislation is enacted.
What does this mean to me?
As a Buyer:
If your state requires Marketplace Facilitators to collect and remit sales tax, you will be required to pay the tax due for your purchases on GunBroker.com. The tax amount will be included on your order during checkout.
What if my business is tax exempt?
If your purchases are exempt from tax, you must submit your tax exemption documentation to GunBroker.com for review. Check with your tax professional or here for the documents required by each state: Sales Tax Exemption Certificates. After review, your account will be set up as tax-exempt buyer.
To submit your exemption please do the following:
GunBroker.com will calculate the tax due on each of your orders. This tax calculation will be based on the Ship To address on the order. The calculation will include tax for the item plus any additional taxes for things such as shipping or handling. When the buyer completes checkout, you will receive the appropriate tax amount as part of payment for the order. Make sure you and your buyers use the GunBroker.com order checkout process to complete the purchase so sales tax is handled properly. Be sure to collect the sales tax since you will be responsible for paying the sales tax amount to GunBroker.com for remittance to the state agencies.
What if I am a private seller and not a business?
Even as a private seller, you will have to collect and remit sales tax on your items. When the buyer completes the checkout process the appropriate tax will be calculated for the order. This tax will be paid to you as part of the payment you receive. In a manner similar to how you pay your GunBroker.com fees, GunBroker.com will bill and collect the sales tax amount from you. GunBroker.com, because of marketplace facilitator legislation, is required to report and remit the tax to the individual states for the transactions on the site.
How will this flow?
GunBroker.com will capture and record the sales tax related to each order. You will then remit that sales tax to GunBroker.com in the same manner as your monthly fees. These amounts will be periodically billed and collected via your payment method on file. GunBroker.com will remit the amounts collected to each state as the marketplace facilitator.
Will I have to change my listings?
No. On January 1, 2021 the GunBroker.com checkout process will begin charging sales tax on all orders. No changes to your listings will need to be made. Any existing tax information on your listings will be overridden by the new process.
Will I have access to sale tax information?
Yes. GunBroker.com plans to provide the ability for you to download your sales tax information as part of this process. The download will contain information about the order, ship to destination (used for tax calculation) and the tax amount.
How will this impact the sale tax filings I submit to states?
Sales tax requirements and regulations vary by state. GunBroker.com suggests you consult a tax accountant or tax attorney for guidance in these matters.
Will this change how my fees are calculated?
No. GunBroker.com fees will continue to be charged on the sale price of the item. The collection of state sales tax will not change your GunBroker.com fees.
What if my account is a charity / tax exempt?
If your sales are exempt from tax, you must submit your tax exemption documentation to GunBroker.com for review. After review, your account will be set up as tax-exempt seller. To submit your exemption please do the following:
Marketplace Facilitator Sales Tax Collection
Marketplace Facilitator Sales Tax Collection
Last Update: December 4, 2020
GunBroker.com will implementing the new Marketplace Facilitator Internet Sales Tax regulations on January 1, 2021. As a marketplace, GunBroker.com will be required to collect and remit sales tax on all sales according to the state law.
What is a Marketplace Facilitator?
A Marketplace Facilitator is defined as an entity that provides a forum for sellers to promote their sale of physical property, digital goods, and services and is compensated for these services. As such, GunBroker.com is deemed to be a Marketplace Facilitator for sellers on the site.
What is Marketplace Facilitator Legislation?
Marketplace Facilitator legislation is a set of laws that shifts the sales tax collection and remittance obligations from the individual seller to the marketplace facilitator. As the Marketplace Facilitator, GunBroker.com will have to calculate, collect and remit state sales tax on sales sold by third party sellers for transactions destined to states where Marketplace Facilitator and/or Marketplace collection legislation is enacted.
What does this mean to me?
As a Buyer:
If your state requires Marketplace Facilitators to collect and remit sales tax, you will be required to pay the tax due for your purchases on GunBroker.com. The tax amount will be included on your order during checkout.
What if my business is tax exempt?
If your purchases are exempt from tax, you must submit your tax exemption documentation to GunBroker.com for review. Check with your tax professional or here for the documents required by each state: Sales Tax Exemption Certificates. After review, your account will be set up as tax-exempt buyer.
To submit your exemption please do the following:
- Send an email to [email protected]
- Attach your tax exemption documentation.
- Send it from the email address used on your GunBroker.com account.
- Use the email subject: Sales Tax Exemption Request - Buyer
- Briefly describe why you are tax exempt in the body of the message.
GunBroker.com will calculate the tax due on each of your orders. This tax calculation will be based on the Ship To address on the order. The calculation will include tax for the item plus any additional taxes for things such as shipping or handling. When the buyer completes checkout, you will receive the appropriate tax amount as part of payment for the order. Make sure you and your buyers use the GunBroker.com order checkout process to complete the purchase so sales tax is handled properly. Be sure to collect the sales tax since you will be responsible for paying the sales tax amount to GunBroker.com for remittance to the state agencies.
What if I am a private seller and not a business?
Even as a private seller, you will have to collect and remit sales tax on your items. When the buyer completes the checkout process the appropriate tax will be calculated for the order. This tax will be paid to you as part of the payment you receive. In a manner similar to how you pay your GunBroker.com fees, GunBroker.com will bill and collect the sales tax amount from you. GunBroker.com, because of marketplace facilitator legislation, is required to report and remit the tax to the individual states for the transactions on the site.
How will this flow?
GunBroker.com will capture and record the sales tax related to each order. You will then remit that sales tax to GunBroker.com in the same manner as your monthly fees. These amounts will be periodically billed and collected via your payment method on file. GunBroker.com will remit the amounts collected to each state as the marketplace facilitator.
Will I have to change my listings?
No. On January 1, 2021 the GunBroker.com checkout process will begin charging sales tax on all orders. No changes to your listings will need to be made. Any existing tax information on your listings will be overridden by the new process.
Will I have access to sale tax information?
Yes. GunBroker.com plans to provide the ability for you to download your sales tax information as part of this process. The download will contain information about the order, ship to destination (used for tax calculation) and the tax amount.
How will this impact the sale tax filings I submit to states?
Sales tax requirements and regulations vary by state. GunBroker.com suggests you consult a tax accountant or tax attorney for guidance in these matters.
Will this change how my fees are calculated?
No. GunBroker.com fees will continue to be charged on the sale price of the item. The collection of state sales tax will not change your GunBroker.com fees.
What if my account is a charity / tax exempt?
If your sales are exempt from tax, you must submit your tax exemption documentation to GunBroker.com for review. After review, your account will be set up as tax-exempt seller. To submit your exemption please do the following:
- Send an email to [email protected]
- Attach your tax exemption documentation.
- Send it from the email address used on your GunBroker.com account.
- Use the email subject: Sales Tax Exemption Request - Seller
- Briefly describe why you are tax exempt in the body of the message.