Marketplace Facilitator Act Update

CDTFA Special Notice L-700 explains that marketplace sellers that sell tangible merchandise through a marketplace such as an Internet website may not be responsible for the sales or use tax on marketplace sales for delivery to California customers. Beginning October 1, 2019, a marketplace facilitator that is registered or required to be registered as a retailer with CDTFA will generally be responsible for paying the sales tax or collecting and paying the use tax on all retail sales for delivery to California customers facilitated through its marketplace. This new requirement is included in the Marketplace Facilitator Act. Get additional information and FAQs from CDTFA’s online Tax Guide for Marketplace Facilitator Act.