A Marketplace Facilitator provides a platform for third parties to sell their merchandise.
Chairish is responsible for calculating and collecting sales tax on all taxable orders (the buyer is located in a taxable state) and remitting the taxes to the appropriate party based on your Seller Tax Settings.
Tax liability is assessed based on the buyer’s location. When the buyer is located in a taxable state, Chairish will calculate and collect the applicable tax upon check out.
Based on your location and Seller Tax Settings Chairish will remit the sales tax in one of two ways:
Marketplace Facilitator States
When a buyer located in a Marketplace Facilitator State (37 states have already adopted this approach) purchases an item from you, Chairish will calculate, collect and remit sales tax to the state. No action is needed on your part!
A Nexus State is a state where you, the seller, have either a physical presence or have significant sales (speak with your tax advisor if you are unsure) - this is called economic nexus.
When a buyer located in a Nexus State purchases from you, and you have physical or economic nexus in that state, Chairish will calculate and collect sales tax at checkout. The sales tax will be included in your seller payout when the order closes. It is your responsibility to remit sales tax to the state.
How to determine if you have nexus?
- You are physically located in the state
- You have significant sales volume in that state
If you are unsure about your nexus status please check with your tax advisor.
Your Tax Settings
When logged into your Chairish account, update your Seller Tax Settings.
- Always check the state in which your business is located.
- If you have economic nexus in any other states be sure to check those boxes as well.
Note: The new take settings will take effect on December 2nd, 2019. Your existing tax settings will remain in effect until the new policy takes effect on December 2nd - you just won't see them in your account!
To determine the customer location for any of your past sales, go to My Sales History in your Chairish dashboard. Just click on the blue button titled "EXPORT TO CSV" to download your sales history. The column in the spreadsheet titled "Shipping" will give you the customer location for each sale.
When Taxes Will Be Passed Through to You
Sales tax will be passed through to you only when the order is being delivered to one of your nexus states AND where that state is marked with an asterisk on your tax settings page. (All other states are marketplace facilitator states, which means Chairish will handle the tax.)
State Specific Requirements
Chairish is registered to collect New York State sales tax and will collect sales tax on all taxable sales of tangible personal property that it facilitates for marketplace sellers for delivery to a New York State address. Therefore, there is no need to request an ST-150 form from Chairish. The official statement is made available in Technical Memorandum TSB-M-19(2.1)S for the State of New York an excerpt from which is provided below.
Alternative to Form ST-150
A marketplace provider who has a publicly-available agreement with its marketplace sellers that includes the following statement, or one that is substantially similar, does not need to issue Form ST-150 to such sellers:
Chairish Inc. is registered to collect New York State sales tax and will collect sales tax on all taxable sales of tangible personal property that it facilitates for marketplace sellers for delivery to a New York State address.
This provision will have the same effect as if the marketplace provider had issued Form ST-150 to its marketplace sellers. If a marketplace seller has a publicly-available agreement with a marketplace provider that includes the statement provided above, or other language pre-approved by the Tax Department, it does not need to obtain Form ST-150 from such provider.