Marketplace Facilitator/Seller FAQs

The following information is for general guidance only. Please be advised that any information made available through FAQs cannot change controlling statutes or regulations and any such information is not intended to constitute "written advice" for purposes of NRS 360.294. To obtain written advice, please request an advisory opinion pursuant to NAC 360.190. 

  Q)        What is economic nexus? 

A)         Economic nexus laws apply to any business that makes sales into states in which they have no physical presence but meet the state’s sales and/or transactions thresholds.

Q)        What is a Marketplace?

A)         A Marketplace is any physical or electronic presence, including but not limited to a store, booth, Internet website, catalog, television or radio broadcast, or a dedicated sales software application, where a marketplace seller sells or offers for sale tangible personal property. (Examples: Platforms such as Amazon, eBay, Auction Houses, Tradeshows/Conventions)

Q)        What is a Marketplace Facilitator?

A)         A Marketplace Facilitator generally includes businesses that facilitate retail sales by providing infrastructure (i.e. listing the product on the Marketplace, communicating offer acceptance of a retail sale, providing the physical or electronic Marketplace, etc.) or support (i.e. customer service, fulfillment or storage services, etc.) for retail sales to occur; AND collecting the sales price, processing payments, or receiving compensations from the retail sale. For full definition, see NRS 372.748. (You or your business facilitate sales on behalf of other sellers and collect and remit the sales tax on their behalf.)

**Marketplace Facilitators include, but are not limited to, consignment stores, auctions, food delivery services such as “Uber Eats” and online Marketplaces such as Amazon and eBay.

Q)        What is a Marketplace Seller?

A)         A person who has an agreement with a Marketplace Facilitator and makes retail sales of tangible merchandise through a Marketplace owned, operated, or controlled by a Marketplace Facilitator. For full definition, see NRS 372.749. (You are a seller that sells through a Marketplace such as Amazon, eBay, Auctions, Tradeshows/Conventions, Uber Eats, etc.)

**A Marketplace Seller can also be a remote seller, if they make direct sales into Nevada in addition to those made through a Marketplace.

Q)        What is a Remote Seller?

A)         A “Remote Seller” is a seller that does not have a physical presence or that had no other legal requirement to register and collect the applicable sales or use taxes in the state.  The United States Supreme Court ruled in South Dakota v. Wayfair on June 21, 2018, that states can require remote sellers to collect and remit the applicable sales or use tax on sales delivered to locations within their state – regardless of whether the seller has a physical presence in the state. Consistent with the Wayfair decision, Nevada has adopted regulations that establish requirements for remote sellers that make sales into Nevada effective 10/1/18. 

**A Remote Seller can also be a Marketplace Seller if, in addition to their direct sales into Nevada, they also sell merchandise through a Marketplace. For more information please visit https://tax.nv.gov/FAQs/Remote-Sellers/.  

Q)        When does a Marketplace Facilitator or Marketplace Seller establish economic nexus?

A)         A Marketplace Facilitator, Marketplace Seller or Remote Seller’s combined sales are used to determine if the sales threshold is met through all sources, to include non-Marketplace (direct retail sales) and Marketplace Nevada sales. Effective October 1, 2019, the Marketplace Facilitator, Marketplace Seller and/or the Remote Seller (no physical presence), must register to collect and remit sales tax on all of its facilitated Nevada retail sales and its direct Nevada retail sales when its total of all such sales exceeds $100,000 or 200 separate transactions in the preceding or current calendar year. (NRS 372.751 section 1(a) and (b)).

            Please note:  Nevada’s new rules went into effect October 1, 2018 for Remote Sellers (South Dakota v. Wayfair). Once a remote seller hits the threshold described above (>$100,000 in sales or 200 or more transactions for delivery into Nevada in the previous or current calendar year), they must register by the first day of the calendar month that begins at least 30 calendar days after they hit the threshold. Sales tax must be collected beginning with sales on that date but does not need to be collected on sales made prior to that date. For example, if a remote seller has already met the threshold on October 1, 2018, they must register and begin collecting sales tax on sales by November 1, 2018.

Q)        How is a Remote Seller different from an In-State Seller?

A)         Unlike Remote Sellers, In-State Sellers have a physical presence (nexus) in Nevada, such as in-state stores, offices, warehouses, employees/representatives located in or coming into the state and inventory stored in Nevada. A business with physical presence must register, collect, remit and report ALL their sales regardless if they do not meet the threshold.

              **Please note, if you are a remote seller that ONLY makes sales through a Facilitator(s) registered to collect Nevada sales tax, you do not need to register with the Department for a Sales Tax Permit if your only presence in Nevada is inventory stored in a third-party's fulfillment center located in Nevada.  

Q)        What are “direct sales”?

A)         Direct sales are any sales made by the seller directly to Nevada consumers. These “sales” do not include Nevada retail sales made through a Marketplace Facilitator.     

Q)        Who must register?

A)         Any person, including a Marketplace Facilitator or a Marketplace Seller that is actively engaged in selling tangible personal property and has a physical presence or economic nexus in this state, including an out of state business that stores its inventory in a third-party’s fulfillment center in Nevada, is required to register with the Nevada Department of Taxation to collect and remit Nevada sales and use tax.

         **Please note, if you are a remote seller that ONLY makes sales through a Facilitator(s) registered to collect Nevada sales tax, you do not need to register with the Department for a Sales Tax Permit if your only presence in Nevada is inventory stored in a third-party's fulfillment center located in Nevada.        

Q)        How does one determine if they have a filing obligation beginning October 1, 2019 for the short period, October 1 through December 31, 2019?

A)           The Marketplace Facilitator, Marketplace Seller or Remote Seller should total its Nevada sales from January 1, 2018 through December 31, 2018 as well as the total Nevada sales from January 1, 2019 through September 30, 2019. If in either year the sales exceed $100,000 or 200 transactions, they are required to register and collect sales tax starting on the first day of the first calendar month that begins at least 30 calendar days after they exceeded the sales threshold, which would be November 1, 2019.       

Q)        When must I register?

A)        The Marketplace Facilitator, Marketplace Seller or Remote Seller must collect Nevada sales tax starting on the first day of the first calendar month that begins at least 30 calendar days after the Marketplace Facilitator, Marketplace Seller or Remote Seller meets or exceeds the Nevada retail sales threshold. They must collect the tax through the end of the calendar year in which the sales threshold was met or exceeded as well as the entire next calendar year. If the Marketplace Facilitator, Marketplace Seller or Remote Seller that is registered fails to meet or exceed the sales threshold at any point in the second year, they are not required to collect and remit the tax in year three. They do not need to collect the tax; however, they still need to file a return to report their total sales in column A and exempt them out in column B.

If the  Marketplace Facilitator, Marketplace Seller or Remote Seller meets or exceeds the sales threshold at any point in year three, they must begin collecting Nevada sales tax on the first day of the first calendar month that begins at least 30 calendar days after the seller met or exceeded the sales threshold.

Q)        Should a Marketplace Facilitator file a separate sales tax return for all sales made on behalf of the Marketplace Sellers they facilitate?

A)        Yes, the Marketplace Facilitator should file one return for all its direct sales under one location and a separate return under a separate location number for all the sales that they facilitate on behalf of the Marketplace Sellers.     **Please note, these locations cannot be consolidated.

Q)        If a Marketplace Seller has no physical presence in Nevada (including inventory stored in a Facilitator's warehouse located in Nevada) and meets or exceeds the Nevada retail sales threshold, but only makes retail sales into Nevada through a Marketplace Facilitator(s) registered to collect Nevada sales tax, do they need to register for a Nevada Sales Tax permit?

A)        If all the Marketplace Facilitators that the seller uses are registered to collect and remit Nevada sales tax, then the seller does not need to register with the Department of Taxation.

**Please note: If the remote seller also makes direct sales into Nevada in addition to those made through the Marketplace Facilitator(s) and the combined sales and/or transactions meet the Nevada threshold, they must register, collect and remit the Nevada sales tax on all direct sales made into Nevada.   

Q)        If I sell through a Marketplace Facilitator, is there any documentation showing that I am relieved from collecting the Nevada sales tax and the Marketplace Facilitator is responsible?

A)        Yes, the Marketplace Facilitator must issue a certificate prescribed by the Department to all Marketplace Sellers stating that the Marketplace Facilitator will register, collect, remit and report all Nevada sales tax. They will also be responsible for being audited on such facilitated Nevada sales.

Marketplace Facilitator Certificate of Collection   

Q)        What if a Marketplace Facilitator does not meet the Nevada retail sales threshold?

A)        If the Marketplace Facilitator does not meet the sales threshold, they do not need to register to collect Nevada sales tax and must notify the Marketplace Seller that it does not meet the threshold so that the Marketplace Seller can register to collect the Nevada sales tax if they meet or exceed the Nevada retail sales threshold.

  

Q)        What if I am a Marketplace Facilitator that also makes my own sales through my Marketplace platform?

 A)        When applying, you will check the "Marketplace Facilitator" box. You will be registered for two locations.

 

  • On the first location, you will report all direct sales (sales made by your company through store front, website, own marketplace, etc.)  If you have no direct sales, please file a zero return.
  • On the second location, you will report all the sales you facilitate on behalf of the Marketplace Sellers using your Marketplace to sell their items.

 

Q)    Can Marketplace Facilitators “opt out” of collecting the Nevada sales tax on behalf of the Marketplace Sellers they facilitate?

A)    Yes, pursuant to NRS 372.751 section 2, the Marketplace Facilitator and Marketplace Seller can enter into a written agreement whereby the Marketplace Seller assumes responsibility for the collection and remittance of the Nevada sales tax for all Nevada retail sales made by the Marketplace Seller through the Marketplace Facilitator if all of the following conditions are satisfied:  

  • The Marketplace Facilitator enters into this agreement with all Marketplace Sellers that the Marketplace Facilitator makes or facilitates Nevada retail sales transactions on behalf of those Marketplace Sellers;
  • All Marketplace Sellers are currently registered with Nevada and hold a Nevada sales tax permit;
  •  The agreement specifies that the Marketplace Seller is responsible for collecting, remitting and reporting the Nevada sales tax on all Nevada retail sales made through the Marketplace Facilitator;
  •  The Marketplace Facilitator maintains notification on its website that Nevada sales tax is being collected, remitted and reported by the Marketplace Seller; and
  • The Marketplace Facilitator provides the agreement to the Department prior to facilitating Nevada retail sales on behalf of the Marketplace Seller.   

Q)   Is a Marketplace Facilitator required to maintain exemption certificates?  

A)   The Marketplace Facilitator is responsible for obtaining and maintaining exemption certificates when the Marketplace Facilitator makes or facilitates a Nevada retail sale on behalf of a Marketplace Seller.

Q)   Can a Marketplace Facilitator be found liable for an underpayment after being audited for sales facilitated on behalf of a Marketplace Seller?

 A)    Yes, pursuant to NRS 372.752 section 1(a) and (b), if the Marketplace Facilitator collects, remits and reports the Nevada sales tax on behalf of the Marketplace Seller and an underpayment has been found after an audit, the Marketplace Facilitator will ultimately be held liable unless (1) The Marketplace Facilitator provides proof satisfactory to the Department that the Marketplace Facilitator has made a reasonable effort to obtain accurate information from the Marketplace Seller about the Nevada retail sale; and (2) The failure to collect, remit and report the correct Nevada sales tax on the retail sale was due to incorrect information provided to the Marketplace Facilitator by the Marketplace Seller. 

Q)   Can a Marketplace Facilitator claim a bad debt deduction on a sale facilitated on behalf of a Marketplace Seller?

A)   A Marketplace Facilitator is allowed to claim a bad debt deduction on a sales transaction if it collects and remits Nevada sales or use tax on behalf of the Marketplace Seller, and either the Marketplace Facilitator or Marketplace Seller is eligible to claim the deduction in accordance with NRS 372.368 and section 166 of the Internal Revenue Code. A Marketplace Facilitator shall claim the bad debt deduction on its Nevada sales and use tax return for the period in which the Marketplace Facilitator or Marketplace Seller writes off the amount as uncollectible in its books and records and such amount is eligible to be deducted as a bad debt for federal income tax purposes. 

Q)       Does a Marketplace Seller need to file a Sales Tax return if a Marketplace Facilitator is collecting and remitting the sales tax on their behalf?

A)     If a Marketplace Seller has presence in Nevada, they are required to register, collect, remit and report the sales tax from all its Nevada sales on a Nevada sales tax return. They will report any direct sales that are not sold through a Marketplace and omit the sales that are reported by the Marketplace Facilitator. If all sales are made through a Marketplace Facilitator, they will file a zero return.

If a Marketplace Seller has NO physical presence in Nevada and ONLY sells through a Marketplace Facilitator that is registered to collect, remit and report the sales tax on the sellers behalf, the Marketplace Seller does not need to register with the Department or file a Nevada sales tax return.

 

 Q)     What if I paid the sales tax on my return in addition to the Marketplace Facilitator for the same sales?

A)     If you self-calculated and remitted sales tax to the Department that was already collected and remitted by the Marketplace Facilitator, you may amend your return. You will need to include the following information and mail it to the Carson City address.

1.   Copy the Sales/Use Tax return for the period (month/quarter) in which sales/use tax was originally paid.
2.   Write “AMENDED” in black, in the upper right hand corner of the tax return.
3.   Line-through original figures for each county in which tax was originally reported, in black, leaving original figures legible.
4.   Enter corrected figures, in black next to lined through figures.
5.   Indicate amount of credit claimed.
6.   Include a written explanation  
7.   Include a copy of the “Certificate of Collection” provided by the Marketplace Facilitator(s) that you use to facilitate your sales 
8.   Include copy of report/invoice/document that shows sales tax was collected by the facilitator on the sales you are amending. 
9.   Indicate whether a refund is requested or whether a credit will be used to meet current/future tax liability.