Who is a marketplace provider?
A Marketplace provider is any person who facilitates a retail sale by a seller by listing or advertising for sale by the seller, in any manner, tangible personal property, or items, property, or goods, or a service specified and, who directly or indirectly, through agreements or arrangements with third parties, processes the payment from the purchaser for the retail sale, regardless of whether the person receives compensation or other consideration in exchange for the services provided by the person.
The law change that takes effect on January 1, 2020 clarifies that a marketplace provider is required to collect and remit Wisconsin sales or use tax on all sales of taxable products and services that the marketplace provider facilitates on behalf of a marketplace seller.
Can a marketplace provider request a waiver from collecting and remitting tax?
YES. A marketplace provider may submit an application using
Form S-102
to the department requesting a waiver from collecting and remitting Wisconsin sales or use tax if its only activities are facilitating sales of products or services on behalf of marketplace sellers that are operating under a hotel, motel, or restaurant brand name shared with the marketplace provider. The waiver may be granted if the department is satisfied that the marketplace seller will collect and remit the tax on the entire amount charged to the purchaser.
Note:
The department may grant waivers to other types of marketplace providers if there is evidence that the marketplace seller will reliably collect and remit the tax to the department.
