U.S. Overview

US Marketplace Facilitator Laws

Overview

As of June 2020, there are 41 jurisdictions states that have passed marketplace facilitator laws requiring the marketplace facilitator to collect and remit sales tax on behalf of third-party sellers; with 1 additional state anticipated in July 2020. A marketplace facilitator is generally defined as a business that contracts with third parties to sell goods and services on its platform and facilitates retail sales by listing the products, taking the payments, collecting receipts, etc.

How Facebook will handle this change

  • Facebook has reviewed the current laws and regulations applicable to marketplace facilitators and determined that we are a marketplace facilitator in certain jurisdictions, herein referred to as “MPF Jurisdictions.” Please see below for a current listing of all MPF Jurisdictions.
    • This list is subject to change and will be updated to address new legislation. Please check back regularly for updates.
  • Facebook will begin collecting and remitting sales and seller’s use taxes (whichever is appropriate) in all US MPF Jurisdictions, effective July 20, 2020, to the extent your sales are taxable. Facebook will perform the following:
    • Facebook will treat game sales through our platform as the sale of a digital good with indefinite right of use.
    • Facebook will compute sales tax on US game sales based on customer provided address information.
    • Customers will be charged sales tax, if applicable, and the tax amount will be separately itemized on the purchase invoice as required by US law.
    • Facebook will handle tax reporting obligations to the tax authorities on taxes collected in the MPF Jurisdictions.
    • For your records, Facebook will provide the collected tax amount in both the Graph API payment object and the daily transaction/payout reports available to you.
      • Graph API will list the tax collected as “tax_remitted_USMPF”
      • The daily transaction/payout reports will indicate any tax collected from your customers under the existing “tax_amount” tag.
    • You will continue to be responsible for collecting and remitting tax on sales made to US customers not located in MPF Jurisdictions, to the extent your sales are taxable.

What this means for you

  • As Facebook is required to collect and remit taxes on your behalf in MPF Jurisdictions, you will no longer be responsible for collecting and remitting taxes in these jurisdictions on game sales made on the Facebook platform. No action to enable this function is required from you.
    • To the extent that you have included any taxes in the sales amount to US customers located in MPF Jurisdictions, please adjust accordingly.
  • You will continue to be responsible for collecting and remitting tax on sales made to US customers not located in MPF Jurisdictions, to the extent they are taxable.
  • Your payout on sales to US customers will not change as a result of this implementation. You will continue to receive the same share of the purchase price to the customer that you currently receive (before any tax is charged by us).
  • Please check this web page for updates to MPF Jurisdictions regularly as tax laws change and Facebook will update our tax responsibilities accordingly.

Current MPF Jurisdictions

Facebook is a marketplace facilitator in the following states listed below. We will collect and remit tax from your customers to the extent that your sales are taxable, effective July 20, 2020.

State State Resource

Alabama [1]

https://revenue.alabama.gov/2018/07/03/ador-announces-sales-and-use-tax-guidance-for-online-sellers/

Alaska [2]

https://arsstc.org/

Arizona

https://azdor.gov/news-events-notices/news/new-tpt-law-remote-sellers-and-marketplace-facilitators-starting-october-1

Arkansas

https://www.dfa.arkansas.gov/excise-tax/sales-and-use-tax/arkansas-remote-seller-frequently-asked-questions-faqs

California

https://www.cdtfa.ca.gov/industry/MPFAct.htm

Colorado [3]

http://leg.colorado.gov/bills/hb19-1240

Connecticut

https://portal.ct.gov/-/media/DRS/Publications/OCG/OCG-8.pdf?la=en

District of Columbia

https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/page_content/attachments/Wayfair%20Response%20Notice%20%281%202%202019%29_0.pdf

Georgia

https://dor.georgia.gov/marketplace-facilitators

Hawaii

https://www.capitol.hawaii.gov/session2019/bills/SB396_SD1_.HTM

Idaho

https://tax.idaho.gov/i-1171.cfm?seg=bus

Illinois

https://www2.illinois.gov/rev/research/legalinformation/EmergencyRules/MarketplaceFacilitator/Pages/default.aspx

Indiana

https://www.in.gov/dor/6744.htm

Iowa

https://tax.iowa.gov/south-dakota-v-wayfair

Kentucky

https://taxanswers.ky.gov/Sales-and-Excise-Taxes/Pages/Remote-Retailers-Marketplace-Providers-FAQs.aspx

Louisiana

http://www.legis.la.gov/legis/BillInfo.aspx?s=20RS&b=SB138&sbi=y

Maine

https://www.maine.gov/revenue/salesuse/salestax/MarketplaceFAQ102019.html

Maryland

https://www.marylandtaxes.gov/forms/Tax_Publications/Tax_Alerts/SUT_Tax_Alert_Sept2019.pdf

Massachusetts

https://www.mass.gov/regulations/830-CMR-64h19-remote-retailers-and-marketplace-facilitators

Michigan

https://www.michigan.gov/documents/treasury/Marketplace_Facilitator__Seller_FAQs_674744_7.pdf

Minnesota

https://www.revenue.state.mn.us/sales-tax-update-marketplace-providers

Nebraska

https://revenue.nebraska.gov/businesses/sales-and-use-tax/information-remote-sellers-and-marketplace-facilitators

Nevada

https://tax.nv.gov/Home/Features/Marketplace_Facilitators_and_Marketplace_Sellers/

New Jersey

https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/tb83.pdf

New Mexico

http://www.tax.newmexico.gov/Businesses/gross-receipts.aspx

New York

https://www.tax.ny.gov/pdf/memos/sales/m19-2s.pdf

North Carolina

https://www.ncdor.gov/taxes-forms/sales-and-use-tax/marketplace-facilitators-and-marketplace-sellers

North Dakota

https://www.nd.gov/tax/user/businesses/formspublications/sales-use-tax/streamlined-sales--use/marketplace-facilitator

Ohio

https://www.tax.ohio.gov/sales_and_use/MarketplaceFacilitators.aspx

Oklahoma

https://www.ok.gov/tax/faqs.html#c571

Pennsylvania

https://www.revenue.pa.gov/GeneralTaxInformation/Tax%20Types%20and%20Information/SUT/OnlineRetailers/Pages/default.aspx

Rhode Island

http://www.tax.ri.gov/Advisory/ADV_2019_11.pdf

South Carolina

https://dor.sc.gov/resources-site/lawandpolicy/Advisory%20Opinions/IL19-14.pdf

South Dakota

https://dor.sd.gov/media/e0ajtwlg/marketplace-provider-bulletin.pdf

Texas

https://comptroller.texas.gov/taxes/sales/remote-sellers.php

Utah

https://tax.utah.gov/sales/marketplace-facilitators

Vermont

https://tax.vermont.gov/business-and-corp/sales-and-use-tax/marketplace

Virginia

https://www.tax.virginia.gov/remote-sellers-marketplace-facilitators-economic-nexus

Washington

https://dor.wa.gov/taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/marketplace-facilitators

West Virginia

https://public.wvtax.gov/Business/SalesAndUseTax/ECommerce/MarketplaceFacilitators/Pages/MarketplaceFacilitators.aspx

Wisconsin

https://www.revenue.wi.gov/Pages/Businesses/marketplace-providers-sellers.aspx

Wyoming

https://www.wyoleg.gov/Legislation/2019/HB0069

[1] For taxable sales delivered to Alabama, Facebook collects the simplified sellers use tax at a flat 8% tax rate. Facebook's Alabama program account number is SSU-R010193989.

[2] Facebook is only a marketplace facilitator for certain enumerated local jurisdictions. Please see Alaska’s MPF website for a list of applicable jurisdictions. As of June 19, 2020, those are:

  • City and Borough of Juneau
  • City of Wasilla
  • Kenai Peninsula Borough
  • City of Kenai
  • City of Seldovia
  • City of Homer
  • City of Soldotna
  • City of Seward
  • City and Borough of Wrangell
  • City of Nome
  • Haines Borough
  • City of Adak
  • City of Palmer
  • City of Cordova
  • Petersburg Borough
  • City of Gustavus
  • City of Kodiak
  • City of Unalaska
  • City and Borough of Sitka
  • City of Dillingham
  • City and Borough of Yakutat
  • City of Craig
  • City of Tenakee Springs

[3] Facebook is only a marketplace facilitator for the state and state administered taxes in Colorado. Colorado has 70+ home-rule municipalities that independently administer sales and use tax. You will continue to be responsible for those taxes.