US Illinois marketplace sales tax collections

Illinois is to require marketplace facilitators to start collecting remote sellers’ sales taxes due on sales to local consumers.

The new measures will come into effect on 1 January 2020. Facilitating marketplaces will be defined as having met economic nexus, and therefore responsible for Illinois sales tax collections, on the following thresholds:

• Sales by the marketplace and its third-party sellers in excess of $100,000 per annum
• More that 200 separate transactions by the marketplace and its merchants

Once over these thresholds, the marketplace must confirm with its sellers that it has taken on the responsibility of sales tax charges and remittance. Sellers may then exclude these sales within their own determination of economic threshold nexus.