Idaho Sales Tax Filing Update May 2019
What's changing in Idaho?
Idaho has passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective June 1, 2019.
- Walmart began this collection on 6/1/19.
- Etsy began this collection on 6/1/19.
- Amazon began this collection on 6/1/19.
- As of May 21, 2019, we have not yet received confirmation that any additional carts currently supported as Marketplace Facilitators in TaxJar's Reporting plan to begin this automatic collection on 6/1/19.
- We will update this article with more details as our research team receives more specific confirmation and guidance from the state's DOR as well as the currently supported Marketplace Facilitators.
- You can view more detail from the state about this law here.
How does this affect me?
If you sell through a Marketplace that has agreed to begin collection in this state, you'll see sales tax collected in Idaho for sales on and after June 1, 2019 on your TaxJar Dashboard and on your Idaho Transactions page.
- If you have never set up a filing frequency for Idaho in your account's State Settings, our system will default the state to a monthly frequency and due date on your Dashboard after we see tax collected there. (We default to a monthly frequency and due date if you haven't yet adjusted any frequencies on your end, but the state itself would ultimately determine your exact filing frequency.)
- If you are currently opted in to receive email reminders for your sales tax due dates, you'll also see Idaho listed as a state where you have an upcoming monthly return due in those emails.
I've never registered for a Idaho license. Do I need to register for a sales tax license in Idaho now?
- If you do not meet any of the criteria that creates nexus in Idaho, you won't need to register for a sales tax license in this state.
I have already registered for a license in Idaho but all of my sales are Marketplace-only sales. Should I cancel my existing registration?
No. All sellers with nexus in the state are considered to be Idaho retailers by the state and your license would need to remain active.
Do I need to collect taxes on my Idaho sales on other platforms?
Yes--if you have nexus in the state (physical or economic) and you make sales to customers in Idaho on platforms outside of the marketplace that is automatically collecting and remitting, you will also need to collect tax on your end on the Idaho orders that are processed on the other platforms.
Do I still need to file returns in Idaho?
- If you've previously registered, the state expects you to remain registered and continue to file returns.
- The state has also noted here that sellers should "have your marketplace facilitator provide written verification of the sales tax they're reporting."
- You may also contact the State Tax Commission from within your Idaho TAP account to request a reduced filing frequency.
I still need to file returns in Idaho. How do I do this without paying double tax on the sales that were collected and remitted by my Marketplace?
- If all of your sales are Marketplace sales, once you deduct the marketplace sales, you will need to file a $0 return.
- If you make sales on other platforms in addition to the Marketplace, you'll need to make sure you remit the tax you collected for those sales when you file.
- If you're enrolled in AutoFile for Idaho, our system will handle the Marketplace sales deduction process automatically.
How does this affect my TaxJar Report for Idaho?
Your Idaho Sales Tax Report will be updated in July 2019 (when returns for sales after June 1, 2019 are due) to specifically reflect sales that had tax collected and remitted by Marketplaces that are supported as Marketplace Facilitators in TaxJar Reports.
- These changes will be similar to the Report updates for other states where the Marketplace Facilitator collects tax automatically.