Multivendor New Taxing Laws For Marketplace

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?

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).

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"

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.

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.

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.

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.

Can you do it ?


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?

did you find a solution for that ? i need it too

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.

Should be very simple: The person withholding tax issues a statement (exact type depends on the local law) then the taxpayer shows it on his tax return similar to how you show taxes paid when you own a stock that issues a K-1 with taxes paid for the taxpayer.

According to the new North American marketplace rules, marketplace owners must charge tax on commission because commission is considered income for marketplace owners. eBay, Amazon, and Etsy have all begun charging tax on commissions based on where you live.

Only true if the Merchant has NEXUS in the Vendor's location (state). The large merchants do have NEXUS in all 50 states.