Kentucky Sales Tax Filing Update July 2019
What's changing in Kentucky?
- Amazon will begin this collection on July 1, 2019.
- Etsy will begin this collection on July 1, 2019.
- eBay will begin this collection on July 1, 2019.
- Walmart will begin this collection on July 1, 2019.
- 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 the state's guidance document here.
How does this affect me?
- If you have never set up a filing frequency for Kentucky 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 Kentucky listed as a state where you have an upcoming monthly return due in those emails.
How does this affect my TaxJar Report for Kentucky?
- These changes will be similar to the Report updates for other states where the Marketplace Facilitator collects tax automatically.
I've never registered for a KY license. Do I need to register for a sales tax license in this state now?
If seller meets definition for engaged in business, then state registration is required.
I have already registered for a license in Kentucky and all of my sales are Marketplace-only sales. Should I cancel my existing registration?
No. If you are a marketplace seller who has already registered due to physical presence (such as inventory stored in your Marketplace's warehouse) or you have voluntarily registered, you should remain registered, according to the DOR.
Do I still need to file returns in Kentucky?
- If you've previously registered, the state expects you to remain registered and continue to file returns.
If all my sales are Marketplace sales, do I need to file a $0 return?
Yes. If your only sales are Marketplace sales, the state still expects you to remain registered and file a return.
Do I need to collect taxes on my Kentucky sales through other platforms?
Yes. If you have nexus in the state (physical or economic) and you make sales to customers in Kentucky on platforms outside of the marketplace that is automatically collecting and remitting, you will also need to collect tax on your end on the Kentucky orders that are processed on the other platforms.
I still need to file returns in Kentucky. How do I do this without paying double tax on the sales that were collected and remitted by my Marketplace?
When filing your Kentucky sales tax return, include the marketplace sales on the Total Receipts line. Then, add a corresponding deduction in the deductions worksheet using the description "Sales Tax Collected by Marketplace."