Marketplace Fairness


Marketplace Sellers

Marketplace seller definition

You are a marketplace seller if you make retail sales through either a physical or electronic marketplace operated by a marketplace facilitator, even if such seller would not have been required to collect and remit the sales tax or use tax had the sale not been made through such marketplace. If you do not have a physical presence in Nevada, you are a remote marketplace seller. 

 

Registration Requirements

Marketplace sellers (without physical presence)

Remote marketplace sellers making retail sales to Nevada consumers -- including sales made through a marketplace -- may be required to register if they make any sales of their own and not through a marketplace facilitator. 

Marketplace sellers (with physical presence) 

If you have physical presence, you must register with the department even if you do not meet the economic threshold in the calendar year or in the immediate preceding calendar year of: 

  1. Cumulative gross receipts from retail sales made to customers in this State which exceeded $100,000; or
  2. made or facilitated 200 or more separate retail sales transactions in Nevada. 

 

    Sales Through a Marketplace Facilitator

    If you make all your retail sales through a marketplace facilitator, you do not need to collect and submit retail sales tax if you have proof that the facilitator is doing so on your behalf. You will still have to file and pay your other excise taxes, such as your Commerce Tax, pursuant to NRS 363C. To find out more about Commerce Tax, see information under our Commerce Tax tab. 

     

      Marketplace Facilitators

      AB 445 of the 2019 Legislative Session

      Requires Marketplace facilitators who directly or indirectly facilitate retail sales to customers in this State, to collect and remit sales and use taxes if the marketplace facilitator in the calendar year or in the immediate preceding calendar year: 

       

      1. had cumulative gross receipts from retail sales made to customers in this State, on its own behalf or on behalf of a seller, which exceeded $100,000; or
      2. made or facilitated 200 or more separate retail sales transactions, on its own behalf or on behalf of a seller.
       

       “Marketplace Facilitator” means a person, including any affiliate of the person, who:

      (a) Directly or indirectly, does one or more of the following to facilitate a retail sale:

      (1) Lists, makes available, or advertises tangible personal property for sale by a marketplace seller in a marketplace owned, operated, or controlled by the person;

      (2) Facilitates the sale of a marketplace seller’s product through a marketplace by transmitting or otherwise communicating an offer or acceptance of a retail sale of tangible personal property between a marketplace seller and a purchaser in a forum including a shop, store, booth, catalog, internet site or similar forum;

      (3) Owns, rents, licenses, makes available, or operates any electronic or physical infrastructure or any property, process, method, copyright, trademark or patent that connects marketplace sellers to purchasers for the purpose of making retail sales of tangible personal property;

      (4) Provides a marketplace for making retail sales of tangible personal property, or otherwise facilitates retail sales of tangible personal property, regardless of ownership or control of the tangible personal property that is the subject of the retail sale;

      (5) Provides software development or research and development activities related to any activity described in this subsection, if such software development or research and development activities are directly related to the physical or electronic marketplace provided by a marketplace provider;

      (6) Provides or offers fulfillment or storage services for a marketplace seller;

      (7) Sets prices for the sale of tangible personal property by a marketplace seller;

      (8) Provides or offers customer service to a marketplace seller or the customers of a marketplace seller, or accepts or assists with taking orders, returns or exchanges of tangible personal property sold by a marketplace seller; or

      (9) Brands or otherwise identifies sales as those of the marketplace facilitator; and

                  (b) Directly or indirectly, does one or more of the following to facilitate a retail sale:

      (1) Collects the sales price or purchase price of a retail sale of tangible personal property;

      (2) Provides payment processing services for a retail sale of tangible personal property;

      (3) Charges, collects or otherwise receives selling fees, listing fees, referral fees, closing fees, fees for inserting or making available tangible personal property on a marketplace or other consideration from the facilitation of a retail sale of tangible personal property, regardless of ownership or control of the tangible personal property that is the subject of the retail sale;

      (4) Through terms and conditions, agreements or arrangements with a third party, collects payment in connection with a retail sale of tangible personal property from a purchaser and transmits that payment to the marketplace seller, regardless of whether the person collecting and transmitting such payment receives compensation or other consideration in exchange for the service; or

      (5) Provides a virtual currency that purchasers are allowed or required to use to purchase tangible personal property.

       

      The term does not include:

      A person who provides Internet advertising services, including, without limitation, the listing of products for sale, if the person does not directly or indirectly or through an affiliate:

      (1) Transmit or otherwise communicate an offer or acceptance of a retail sale of tangible personal property between a marketplace seller and a purchaser; and

      (2) Do one or more of the activities listed in paragraph (b) below

      (b) A person who arranges, books or otherwise facilitates, for a commission, fee or other consideration, vacation or travel packages or rental car or other travel reservations or accommodations through a marketplace owned, operated or controlled by the person. The exclusion set forth in this paragraph applies only with respect to the arranging, booking or facilitation, for a commission, fee or other consideration, of the lease or rental of a passenger car, as defined in NRS 482.087.

        Op-Out Provisions

        A marketplace facilitator is not required to collect and remit sales and use taxes if: 

        1. the marketplace facilitator and a seller making sales through the marketplace facilitator have entered into a written agreement whereby the seller agrees to assumed responsibility for the collection and remittance of sales and use taxes on retail sales made by the seller through the marketplace facilitator; and
        2. the seller is registered with the Department of Taxation to collect sales and use taxes on retail sales made by the seller.
        Upon request of the Department, a marketplace facilitator shall provide to the Department, a report containing the name of each marketplace seller with whom the marketplace facilitator has entered into an agreement pursuant to this section and such other information as the Department determines is necessary to ensure that each marketplace seller with whom the marektplace facilitator has entered into an agreement pursuant to this section, has obtained a permit pursuant to NRS 372.125 or registered pursuant to NRS 360B.200 and are filing their own returns.

         

         

         

          Liability Relief for Marketplace Facilitators

          There are two types of liability relief for marketplace facilitators.

           Type 1: Liability relief—incorrect collection amount

          A marketplace facilitator is relieved of liability for not collecting the correct amount of tax only if they:

          • can show that the error was based on incorrect information from the seller
          • are not affiliated with the seller
          • the failure to collect the tax was due to an error other than an error in sourcing the retail sale

           Type 2: Liability relief—failure to collect tax on taxable sales

          A marketplace facilitator is relieved of liability for not collecting tax on taxable sales through their marketplace only if they:

          • are not affiliated with the seller
          • can show that the error was not a sourcing error  
          • the retail sale was made before January 1, 2021
          • the retail sale was made through a marketplace of the marketplace facilitator

          Calendar year

          Type 2 liability relief amounts

          2019 and 2020

          cannot exceed 5% of the total due for the calendar year on facilitated sales to Nevada customers

          2021

          is no longer available

          Note: Sales tax is calculated based on the location where the sale is sourced or delivered. Use the Department’s Sales Tax Map under the Publications tab to calculate the correct rate. To determine whether a product is subject to Nevada sales tax use the Taxability Matrix Under the Streamlined Sales and Use Tax tab.

           

          Questions?

          Call our Call Center at: 866-962-3707