Georgia marketplace facilitator law. Hb 276 was signed into law act 322 on january 30. State of georgia government websites and email systems use georgiagov or gagov at the end of the address. It will apply to marketplace facilitators with sales in excess of 100000 in the state.
Marketplace facilitator legislation is a set of laws that shifts the sales tax collection and remittance obligations from a third party seller to the marketplace facilitator. On january 30 2020 governor kemp signed georgias marketplace facilitator bill hb. As the marketplace facilitator amazon will now be responsible to calculate collect remit and refund state sales tax on sales sold by third party sellers for.
A marketplace facilitator is a business or organization that contracts with third parties to sell goods and services on its platform and facilitates retail sales. Georgias marketplace facilitator law states that marketplace facilitators who generate in excess of 100000 on behalf of 3rd party sellers are subject to collecting and remitting sales tax on sales made through the marketplace. Marketplace facilitators enable these sales by listing the products taking the payments collecting receipts and in some cases assisting in shipment.
A marketplace facilitator is a dealer and is required to collect and remit georgia state and local sales taxes on facilitated retail sales sourced to georgia if the total value of the sales price of its taxable retail sales sourced to georgia combined across all its marketplace sellers and the marketplace facilitator itself equals or. These laws are significant because they shift the obligation to collect and remit sales tax from the seller to the platform that facilitates the sale the marketplace facilitator. Effective april 1 2020 the law will require marketplace facilitators to collect and remit sales and use tax on behalf of marketplace sellers.
To provide for related matters. Just a few days into the 2020 legislative session lawmakers in the house and senate passed a measure requiring marketplace facilitators to collect and remit sales tax on behalf of third party sellers. Local state and federal government websites often end in gov.
To require the collection and remittance of sales tax by certain persons that facilitate certain retail sales. When we refer to marketplace facilitator laws were talking about legislation. Georgia governor brian kemp signed house bill 276 into law on january 30 which makes the marketplace facilitator the dealer responsible for the tax due on all sales sourced to georgia and made through the marketplace including those by small marketplace sellers based in other states who wouldnt otherwise be required to collect and remit.
To define marketplace facilitators and marketplace sellers. Before sharing sensitive or personal information make sure youre on an official state website. A bill to be entitled an act to amend article 1 of chapter 8 of title 48 of the official code of georgia annotated relating to state sales and use tax so as to modify the definition of dealer.