A Marketplace Facilitator provides a platform for third parties to sell their merchandise.
DECASO is responsible for calculating and collecting sales tax on all taxable orders (the buyer is located in a taxable state) and remitting the taxes to the appropriate party based on your Dealer Tax settings.
Tax liability is assessed based on the buyer’s location. When the buyer is located in a taxable state, DECASO will calculate and collect the applicable tax upon check out.
Based on your location and Dealer Tax settings DECASO will remit the sales tax in one of two ways:
Marketplace Facilitator States
When a buyer located in a Marketplace Facilitator State (37 states have already adopted this approach) purchases an item from you, DECASO will calculate, collect and remit sales tax to the state. No action is needed on your part!
A Nexus State is a state where you, the seller, have either a physical presence or have sales significant sales (speak with your tax advisor if you are unsure) - this is called economic nexus.
When a buyer located in a Nexus State purchases from you, and you have physical or economic nexus in that state, DECASO will calculate and collect sales tax at checkout. The sales tax will be included in your seller payout when the order closes. It is your responsibility to remit sales tax to the state.
How to determine if you have nexus?
- You are physically located in the state
- You have significant sales volume in that state
If you are unsure about your nexus status please check with your tax advisor.
Your Tax Settings
When logged into your DECASO account, update your Dealer Tax settings.
- Always check the state in which your business is located.
- If you have economic nexus in any other states be sure to check those boxes as well.
Note: The new take settings will take effect on December 2nd, 2019. Your existing tax settings will remain in effect until the new policy takes effect on December 2nd - you just won't see them in your account!
To determine the customer location for any of your past sales go to "My Sold Items" in your DECASO dashboard. Just click on the blue button titled "EXPORT TO CSV" to download your sales history. The column in the spreadsheet titled "Shipping" will give you the customer location for each sale.
State Specific Requirements
Chairish is registered to collect New York State sales tax and will collect sales tax on all taxable sales of tangible personal property that it facilitates for marketplace sellers for delivery to a New York State address. Therefore, there is no need to request an ST-150 form from Chairish.