- The California Department of Tax and Fee Administration (CDTFA) has issued a permanent sales tax regulation for marketplace sales.
- The regulation applies to marketplace facilitators, who are considered sellers and retailers for sales made through their marketplace.
- Marketplace facilitators are subject to California’s $500,000 sales threshold to determine if they have economic nexus with the state.
- An emergency regulation was implemented in June 2020, which included definitions, registration requirements, and procedures for marketplace facilitators.
- The permanent regulation retains most of the language from the emergency regulation but includes some changes and additions to definitions.
- The definition of “facilitate” is amended to clarify activities that make it possible or easier for marketplace sellers to sell their products.
- Other definitions, such as “branding sales,” “listing products for sale,” and “payment processing services,” have also been amended and expanded.
- The regulation clarifies that all sales of tangible personal property for delivery in California are considered when determining if a marketplace seller is engaged in business in the state.
Source: grantthornton.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
