Sales Tax Update for Marketplace Providers

A marketplace provider is any person, other than the seller, who facilitates a retail sale by:

• Listing or advertising the seller’s products
• Processing the payments from the customer, either directly or indirectly through a third party, regardless of whether the marketplace provider receives compensation or other consideration in exchange for its services

Starting October 1, 2019, an out-of-state marketplace provider must collect and remit sales tax if their total sales (including facilitated sales) over the prior 12-month period total either:

• 200 or more retail sales shipped to Minnesota
• More than $100,000 in retail sales shipped to Minnesota

Note: The marketplace provider is not required to collect on behalf of the seller when the seller provides a marketplace provider a copy of its Minnesota sales tax registration, and there is an agreement that the seller will collect and remit sales tax.

• FAQs for Remote Sellers
• Update for Remote Sellers