Marketplace Facilitators and West Virginia Sales and Use Tax

Source: House Bill 2813 passed March 8, 2019, effective June 6, 2019.

In general, marketplace facilitators will be one of two types:

Type 1 – Some marketplace facilitators are also remote sellers who are selling their own products and services. Any remote seller presently required to collect and remit West Virginia sales and use taxes will be required to collect and remit West Virginia sales and use taxes when they facilitate a sale made on and after July 1, 2019.

Type 2 – Some marketplace facilitators only facilitate sales made for third parties. In these transactions, the marketplace facilitator is the merchant of record. Type 2 marketplace facilitators are required to collect West Virginia sales and use taxes on sales to West Virginia consumers facilitated on and after July 1, 2019.

The following frequently asked questions and answers pertain to Type 2 marketplace facilitators. Type 1 marketplace facilitators should see the frequently asked questions and answers for Remote Sellers.

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A marketplace facilitator can register to begin collecting and remitting West Virginia State and municipal sales and use taxes through either of the following methods:

Register directly with West Virginia – To register only for West Virginia, use West Virginia's online registration system at https://business4.wv.gov/pages/default.aspx, or go to https://tax.wv.gov/Business/BusinessRegistration/Pages/BusinessRegistration.aspx for a business application form.

Register through Streamlined Sales Tax -- To register for multiple states, including West Virginia, submit a single application through the Streamlined Sales Tax Registration System (SSTRS). There is no fee to complete and submit this online registration.

Upon completion of the registration, the remote seller will be registered to collect and remit sales and use tax in all 24 Streamlined member states.

Additional information is provided on the Streamlined Sales Tax Registration System (SSTRS) web page, and in the Streamlined Sales Tax Registration System FAQs.

A remote seller may use a Certified Service Provider (CSP) to perform its sales or use tax responsibilities when registering through the Streamlined Sales Tax Registration System (SSTRS). CSPs are certified under the Streamlined Sales and Use Tax Agreement to perform all the remote seller's sales and use tax functions, other than the remote seller's obligation to remit tax on its own purchases. A CSP is designed to allow a business to outsource most of its sales tax administration responsibilities. If a remote seller registers through the Streamlined Sales Tax Registration System (SSTRS) and contracts with a CSP to perform its sales and use tax functions (i.e., CSP Services), the CSP will file monthly sales and use tax returns on behalf of the remote seller.

See the CSP FAQs for more information.

A marketplace facilitator that does not qualify for the small-seller exception but only makes nontaxable sales in West Virginia is not required to register to collect West Virginia sales or use tax.

For example, a marketplace facilitator that only facilitates the making of sales for resale, is not required to register for sales or use tax. However, if that marketplace facilitator also facilitates taxable sales to end-users (i.e., not for resale), then the marketplace facilitator is required to register and collect sales or use tax on those sales, unless a West Virginia exemption applies.

Marketplace facilitators are required to collect and remit sales or use tax on all sales of taxable products and services into West Virginia, unless an exemption applies (e.g., resale). See the department's Booklet online under the Business Registration forms page. The Booklet provides Information and Instructions for Business Registration.

Note: New standards for administering sales tax laws for remote sellers have been developed by Administrative Notice 2018-18 consistent with South Dakota v. Wayfair, Inc., which approved a small-seller exception for remote sellers who (1) do not have annual sales of products and services into the state of more than $100,000 and (2) have less than 200 separate transactions for delivery in West Virginia.

See the answer to Question #7 for more information about the small-seller exception.

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Source: House Bill 2813 passed March 8, 2019, effective June 6, 2019.
 

For additional information, please contact:

West Virginia State Tax Department 
Taxpayer Services Division 
P.O. Box 3784 
Charleston, West Virginia 25337-3784 

Phone: (304) 558-3333 
Fax: (304) 558-3269 
Email additional questions to TaxHelp@WV.Gov

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