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Multivendor New Taxing Laws For Marketplace Rate Topic   - - - - -

 
  • roguls
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Posted 14 July 2021 - 04:50 PM #1

Hello, 

 

As per the new marketplace rules in North America, marketplace owners must charge tax on the commission because commission acts as an income for marketplace owners. eBay, Amazon, Etsy have alll started charging tax on the commission depending on which province you are in. 

 

Is there any such feature in Multivendor?



 
  • Burleyy8
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Posted 30 July 2021 - 06:16 AM #2

New regulations already passed by the majority of states require online marketplace owners and operators to collect and remit sales taxes on behalf of their sellers. Below is a walkthrough of the new responsibilities in the form of frequently asked questions and answers (FAQ).



 
  • tbirnseth
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Posted 02 August 2021 - 08:36 PM #3

New regulations already passed by the majority of states require online marketplace owners and operators to collect and remit sales taxes on behalf of their sellers. Below is a walkthrough of the new responsibilities in the form of frequently asked questions and answers (FAQ).

 

Not seeing any "below"


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  • tbirnseth
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Posted 02 August 2021 - 08:39 PM #4

Hello, 

 

As per the new marketplace rules in North America, marketplace owners must charge tax on the commission because commission acts as an income for marketplace owners. eBay, Amazon, Etsy have alll started charging tax on the commission depending on which province you are in. 

 

Is there any such feature in Multivendor?

 

The tax will then be withheld from the Vendor's commission and paid by the Merchant when the Merchant has NEXUS in that state.  If not, it will be free money to the Merchant.  How is the vendor going to report their taxable revenue to their state when the tax has already been withheld by the Merchant?

 

Seems like a law written for the big players.  Again the small players will get screwed.


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  • roguls
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Posted 06 September 2021 - 12:09 AM #5

The law I am referring to is for the tax that we as marketplace owners have to charge because commission acts as our income and just like any good and services sold has to be charged tax in Canada, we have to charge tax on the commission as it's considered as a "service" for offering a marketplace to the sellers. 



 
  • tbirnseth
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Posted 08 September 2021 - 06:26 PM #6

Then you will have to do custom calculation for the commission to deduct the tax on the commission from the vendor's payout.

You can try to report this as a defect to cs-cart and you can try to find a developer that will do the work for you.  The raw calculation is not difficult, but presenting the detail to the vendor so they can see it is cumbersome.


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