State’s Collecting Sales Tax on Cryptocurrency Sales

 
16 States Currently Expect Online Marketplaces to Collect Sales Tax

 

 

Online business have taken the market by storm and have literally bought everything online. And as lead sorting has become the most commonly used software about which you can read briefly on https://www.salesforce.com/products/marketing-cloud/best-practices/basic-science-behind-lead-scoring/, to reach a base where it is easy to determine which is the potentially most valuable prospect in sales and marketing for businesses thus it's helping them become more effective all the while saving a ton of money. Online marketplaces that allow or plan to allow customers to make purchases with virtual currency may unknowingly be setting themselves up to collect sales tax in more than a dozen states. 16 states have a special provision in their marketplace facilitator laws that put marketplaces on the hook for sales tax collection if the business provides the option to pay with virtual currency to customers, according to Bloomberg Tax data.

Marketplace facilitator laws require businesses like Amazon.com Inc. and Etsy Inc. to collect and remit sales and use tax on behalf of their vendors if they cross a specific threshold in the state.

An example of such a currency could be Facebook’s newly announced Libra cryptocurrency. Another is “credits” that can be purchased with cash and then used to buy upgrades and merchandise within video games through systems like Microsoft Corp.'s Xbox or Sony Corp.'s PlayStation consoles, according to Mark Nebergall, president of the Software Finance & Tax Executives Council.

Below are the states that currently have provisions that classify a marketplace facilitator as an entity that provides “a virtual currency that buyers are allowed or required to use in order to purchase products from the vendor, don't forget to check the infomation provided at IQoption.

 

Alabama, California, Idaho, Iowa, Massachusetts, Nevada, New Jersey, North Dakota, Ohio, Kentucky, Rhode Island, Utah, Vermont, Virginia, Washington, and West Virginia

States sprung at the chance to tax marketplace facilitators after the U.S. Supreme Court’s June 2018 ruling in South Dakota v. Wayfair tossed out its 1992 physical presence standard affirmed in Quill Corp. v. North Dakota that limited the ability of states to tax remote sales. The majority in the 5-4 ruling suggested strongly that South Dakota’s law would pass constitutional muster. Since the ruling, dozens of states have adopted a marketplace facilitator law.