Starting October 1, 2019, the existing marketplace law will change.
Marketplace providers and remote sellers that solicit sales in Minnesota, but do not maintain a physical place of business in Minnesota, must register, collect, and remit Minnesota sales tax no later than 60 days after they either make or facilitate:
- 200 or more retail sales into Minnesota during the last 12-month period
- Retail sales totaling more than $100,000 into Minnesota during the last 12-month period
The marketplace provider must collect sales tax on sales they facilitate unless the marketplace provider and seller agree that the seller will collect the sales tax. The seller is required to give the marketplace provider a copy of its registration to collect sales tax in Minnesota.
Marketplace providers are subject to audit on sales they are required to collect and remit sales tax. However, they are not liable for failing to file, collect, and remit sales tax if the error is due to the remote seller providing incorrect or insufficient information.