How Does Marketplace Facilitator Tax Collection Work?

Based on current tax laws, Storenvy is responsible for calculating, collecting, and remitting sales tax on behalf of sellers, for the full amount paid by the customer, for Marketplace orders shipped to customers in the following states:
 

• Alabama (1/6/20)
• Arizona (12/18/19)
• Arkansas (12/17/19)
• California (12/18/19)
• Colorado (12/18/19)
• Connecticut (12/18/19)
• District of Columbia (12/19/19)
• Florida (7/1/21)
• Georgia (1/1/20)
• Hawaii (1/1/20)
• Idaho (12/17/19)
• Illinois (1/1/20)
• Indiana (12/18/19)
• Iowa (12/17/19)
• Kentucky (2/3/20)
• Louisiana (9/1/21)
• Maine (12/18/19)
• Maryland (12/18/19)
• Massachusetts (12/18/19)
• Michigan (2/3/20)
• Minnesota (12/18/19)
• Mississippi (9/1/21)
• Nebraska (12/19/19)
• Nevada (12/18/19)
• New Jersey (12/18/19)
• New Mexico (12/18/19)
• New York (12/18/19)
• North Carolina (2/3/20)
• North Dakota (2/3/20)
• Ohio (12/18/19)
• Oklahoma (12/18/19)
• Pennsylvania (12/18/19)
• Rhode Island (1/7/20)
• South Carolina (12/18/19)
• South Dakota (12/18/19)
• Tennessee (10/28/20)
• Texas (12/18/19)
• Utah (12/18/19)
• Vermont (12/18/19)
• Virginia (12/18/19)
• Washington (12/18/19)
• West Virginia (12/18/19)
• Wisconsin (12/18/19)
• Wyoming (12/19/19)

Prior to the effective dates listed above, you should continue to collect and remit tax in these states if required. Additional states will likely be handled in the same manner in the near future, so be sure to check back on this article periodically for updates.

Once Storenvy starts to collect tax for Marketplace orders shipped to the above states, no action is required on your part, and there will be no charges or fees for Storenvy automatically calculating, collecting, and remitting sales tax.  For clarity, the collection process will apply to Marketplace orders only, whether the seller is located in or outside of the United States, but not sales made directly through custom Storefronts.

If you have opted to collect sales tax in one of the states listed above, your Storenvy setting for that state will be void and will no longer be used to calculate tax for Marketplace orders. Storenvy’s responsibility to collect and remit in the state will override yours.

Merchants are not able to opt out of selling items into the states listed above or opt out of Storenvy automatically collecting sales tax for applicable Marketplace orders.