Marketplace Sales Tax FAQ
Please note: athleteReg cannot offer tax or legal advice and is sharing this data for informational purposes only.
What is a Marketplace Facilitator?
A Marketplace Facilitator is defined as a marketplace that contracts with third party sellers to promote their sale of physical property, digital goods, and services through the marketplace.
athleteReg is considered a Marketplace Facilitator as we facilitate the sale of goods and services between event directors and participants.
New ‘Marketplace Facilitator’ laws are being enacted in a number of states as a result of the landmark Supreme Court decision in South Dakota v. Wayfair.
How does athleteReg being a Marketplace Facilitator affect my event or my participants?
In accordance with the new Marketplace Facilitator laws, athleteReg is implementing new technology to facilitate collecting and remitting state sales tax on behalf of our event directors and their applicable events.
There will be no additional cost incurred to the director. Like any other taxable sale, we will calculate tax on each transaction and pass it along to the participant. This allows us to provide additional services to you by taking on the burden of tracking legislation, and collecting and remitting taxes.
How is athleteReg preparing?
In response to this legislation, and in preparation for the changes that would be required for athleteReg and our customers, we’ve been upgrading our platform to better assist you with your obligation for sales tax collection and remittance. To ensure we’re 100% on top of this new law, we have completed an in-depth taxability analysis that looked closely at the specific legislation in each state, as well as all the types of transactions at athleteReg that would be affected — including event and race registrations, merchandise, and service fees.
When will this be available?
Spring 2020. We will be providing more communication and instruction in advance.
How do I know if I am in a marketplace state and if this applies to me?
We will be providing more detailed communication in the weeks ahead, including a complete taxability outline showing which states this will affect and on which types of sales.
If I am in a non-marketplace state do you collect taxes for me?
No, we will not collect and remit tax for non-marketplace states. You can use our existing custom tax tool to set up taxes if you’d like. Using this tool, you can set up tax rates, these taxes are then paid to you, the event director, and you are responsible for filing and paying with those funds.
When you report taxes, will you report my TaxID and other details to the state?
No, it is not required. athleteReg will file an overall tax collection report across all of our events for your state.
What data will be available to me?
We will be providing you with detailed reporting options showing taxes paid on each transaction. You will be able to provide reporting from athleteReg showing that sales tax was collected and paid on your behalf, if your accountant or state asks for your organization to pay sales tax.
Are entry fees taxable?
In some states entry fees are considered taxable. In many others only merchandise sales are taxable. We will calculate this and tax appropriately. We will be sharing a complete taxability outline soon so you can understand what may be taxable for your event.
What types of merchandise are taxable?
This varies from state to state. We will offer you tools in the merchandise area to select the taxability type for each of your merchandise items.
Our event is run by a non-profit. Are we exempt from sales tax?
Many nonprofits are exempt from tax and we will offer you the ability to certify that you are eligible to take a nonprofit sellers exemption.
What is my responsibility in collecting, remitting, and reporting to the state?
You are currently responsible for any sales tax due until we launch our marketplace solution this spring. You can use our existing custom tax tool if you’d like.
We will be notifying you, the event director, as we get each state online and when we will be doing the calculation, reporting, and remitting on your behalf. Until that time, the collection and remittance of tax is still your responsibility.