A marketplace seller is one who uses a marketplace facilitator to facilitate a sale.
A marketplace seller has a contract with a marketplace facilitator in which the facilitator agrees to list or advertise the seller’s goods and services for sale through the marketplace and collect payment from the purchasers and transmit the payment back to the seller.
Marketplace sellers should be notified by their marketplace facilitator concerning whether the facilitator will collect Pennsylvania sales tax or send the required notices. In either case, the burden is on the facilitator to comply with the requirements.
In general, marketplace sellers are not required to file their own elections. However, a marketplace seller that is already collecting Pennsylvania sales tax should continue collecting sales tax until otherwise notified by its marketplace facilitator that the facilitator is collecting the sales tax. A marketplace seller should maintain this notification in its records.
Marketplace seller who maintains a place of business in the Commonwealth of Pennsylvania
A marketplace seller who maintains a place of business in the Commonwealth is required to ensure the collection and remittance of sales tax on its taxable sales in Pennsylvania.
That obligation may be met directly by the marketplace seller who maintains a place of business in the Commonwealth, or by its marketplace facilitator.
If the marketplace facilitator maintains a place of business in the Commonwealth, the marketplace facilitator must collect on behalf of the marketplace seller.
Records must be maintained by the marketplace seller that substantiate the tax was properly charged by the marketplace facilitator.
Marketplace seller who does not maintain a place of business in the Commonwealth of Pennsylvania
When a marketplace seller uses a marketplace facilitator that maintains a place of business in Pennsylvania, the marketplace facilitator must collect sales tax on behalf of the marketplace seller.
A marketplace seller who does not maintain a place of business in the Commonwealth may be subject to the Remote Seller provisions if it makes sales through a marketplace facilitator and makes direct taxable sales to Pennsylvania customers in excess of $10,000 during the prior 12-month period.
See more information on Remote Sellers.