Marketplace Sales & Use Tax Information

Certain provisions of HB19-1240 have changed the sales tax obligations for businesses and individuals who sell products via online marketplaces. This law also defined the different aspects of a retail transaction: 

  • Marketplace - a physical or electronic forum; including, but not limited to, a store, a booth, an internet website, a catalog, or a dedicated sales software application, where tangible personal property, commodities, or services are offered for sale, lease, or rental.

  • Marketplace Facilitator - an individual or legal entity that operates a marketplace (i.e. Amazon or Etsy) 

  • Marketplace Sellersomeone who sells goods through a marketplace facilitator

  • Multichannel Seller - someone who sells through a marketplace facilitator, but also sells products directly to customers online or in a physical store. 

Your Marketplace Questions Answered

This video has the answers to many frequently asked questions about marketplaces.