In one week, new Massachusetts sales and use tax requirements will begin to apply to out-of-state remote sellers and marketplaces.
According to the state Department of Revenue, remote sellers beginning Oct. 1 must collect taxes on sales of tangible personal property or services into Massachusetts when they have Massachusetts sales that exceed $100,000 in a calendar year.
Marketplaces must collect taxes on behalf of third parties selling on their marketplace when the marketplace’s total Massachusetts sales, including those facilitated on behalf of marketplace sellers and those made directly by the marketplace, exceed $100,000 in a calendar year.
Remote sellers and marketplaces are required to file Massachusetts sales and use tax returns on a monthly basis, according to the DOR, and returns are due for each calendar month on or before the 20th day of the following calendar month. Tax payments are due with each return.
The state is working to establish the registration process for marketplaces under the new law.
