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New States continue to roll out as part of the Marketplace Sales Tax Nexus.
As of October 1, 2019, Etsy is collecting and remitting Sales Tax in many states, including California and Colorado on behalf of sellers.
We, at Accounting for Jewelers, keep this up to date for you as our client with Sales Tax remittance, but stay in the know! Click here for a complete list of all states that Etsy collects and remits to for you.
This means that as an Etsy seller, you no longer have to collect and remit for that state unless you have other revenue streams.
For example, if you sell on Etsy from California into California, you no longer have to collect and remit the sales tax from the sales made on Etsy.
However, if you also sell other ways not using the Etsy platform, for example, Square, Shopify, Cash and Checks not recorded in Etsy checkout, etc, then you will need to still collect the destination based California sales tax and remit it to the state in accordance with your filing frequency (monthly, quarterly, annually).
You will still include the total Sales income in your Gross Sales (before tax), but these sales will be tax exempt because they were sold in a Marketplace. Amazon, Etsy and other large eCommerce platforms had to comply to collect sales tax for states on their behalf to take the burden off of you, the seller, and to meet the changing tax landscape of Physical and Economic Nexus.
Want to learn more on Nexus?
Click here to get our slides and quick reference chart and click here for the most up to date news and charts from the Sales Tax Institute.
