Nevada sales tax filing update October 2019: Marketplace facilitator laws

Nevada passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective October 1, 2019.

• Amazon, eBay, Etsy, and Walmart began this collection on October 1, 2019.

In this article, we summarize Nevada's state guidance on the following questions:

I've never registered for a Nevada license. Do I need to register for a sales tax license in Nevada now?

If you have never registered for a sales tax license in Nevada and your only sales in Nevada are through a Marketplace and your Marketplace Facilitator collects and remits sales tax on your behalf in this state, you will NOT need to register for a Nevada sales tax license.

• According to the Nevada Department of Taxation, marketplace sellers still may be required to file and pay other excise taxes.  Please contact the state directly to confirm your other business tax liabilities. 

If you are a retailer with a physical presence in Nevada or you are a remote seller who has crossed the economic nexus threshold for Nevada ($100,000/year in gross revenue, or more than 200 separate sales transactions in Nevada in the current or last calendar year), then you will need to register for a Nevada sales tax license.

• If you've imported your sales across all platforms into your TaxJar account, you can determine if you have economic nexus in the state by running the Sales & Transactions Checker.
• If you do not meet any of the criteria that create nexus in Nevada (physical, economic or otherwise), you won't need to register for a sales tax license in this state.

I have already registered for a license in Nevada and all of my sales are Marketplace-only sales. Should I cancel my existing registration?

• If such a seller is already registered, they may be able to cancel the registration. However, this may vary depending on each taxpayer's scenario.
• We always recommend checking directly with the state or a sales tax consultant who can provide more detailed advice specific to your business scenario prior to canceling your registration. 

Do I need to collect taxes on my Nevada sales on other platforms?

Yes--if you have nexus in the state (physical or economic) and you make sales to customers in Nevada on platforms outside of the marketplace that is automatically collecting and remitting, you will also need to collect tax on your end on the Nevada orders that are processed on the other platforms.

Do I still need to file returns in Nevada?

Yes--once you register for a license, you will be required to file a return based on the frequency the state has assigned you.

• If you've previously registered, the state expects you to remain registered and continue to file returns including zero returns.

I still need to file returns in Nevada.  How do I do this without paying double tax on the sales that were collected and remitted by my Marketplace?

When filing your return, your "Marketplace Sales" are automatically included in "Gross Sales" on your TaxJar report.

• You would enter the full "Gross Sales" amount as shown on your TaxJar report into the line for total sales on your sales tax return.
• If all your sales are Marketplace sales, then you can choose "No" for the question: "Do you have any retail, wholesale, or out of state sales of tangible personal property to report?"
• Finally, when entering exempt sales on your return, be sure to include the value shown in the "Marketplace Sales" line on your TaxJar report.

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 have both marketplace and non-marketplace sales, our Report will show the jurisdictional breakdown for only the non-marketplace sales. 
• If you're enrolled in AutoFile for Nevada, our system will handle the Marketplace sales deduction process automatically.