Out-of-state Remote Sellers & Marketplaces Begin Collecting MA Sales Tax on October 1st

Brick-and-mortar Retailers Applaud a Level Playing Field 

From the DOR:

Document Title: 830 CMR 64H.1.9:  Remote Retailers and Marketplace Facilitators

Status: Emergency Regulation; Promulgation date: September 23, 2019

Tax type: Sales and Use Tax

Summary: This emergency regulation explains the new Massachusetts sales and use tax collection requirements that apply to out-of-state “remote” sellers and marketplace facilitators (“marketplaces”) starting as of October 1, 2019.  Remote sellers must collect tax on sales of tangible personal property or services into Massachusetts when they have Massachusetts sales that exceed $100,000 in a calendar year.  Marketplaces must collect tax on behalf of third parties (“marketplace sellers”) selling through the marketplace when the marketplace’s total Massachusetts sales (including those facilitated on behalf of marketplace sellers and those made directly by the marketplace on its own behalf) exceed $100,000 in a calendar year.  As of October 1, 2019, the rules in 830 CMR 64H.1.7: Vendors Making Internet Sales will cease to apply.

Target Audience: Vendors, Marketplace Facilitators, Tax practitioners

Link to Regulation

Link to DOR Webpage