Illinois Sales Tax Filing Update January 2020: Marketplace Facilitator Laws

Illinois has passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective January 1, 2020.

 Amazon, eBay, Etsy and Walmart began this collection on January 1, 2020.

📣 Your Illinois Reports were updated on February 6, 2020, to reflect these changes  for sales on and after January 1, 2020.

Please review general information regarding Marketplace Facilitators and how your TaxJar Sales Tax Reports support these changes here in our FAQ

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

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

If you are a retailer with a physical presence in Illinois or you are a remote seller who has crossed the economic nexus threshold for Illinois ($100,000/year in gross revenue, or more than 200 separate sales transactions in Illinois in the previous 12 months), then you will need to register for an Illinois 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 Illinois (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 Illinois and all of my sales are Marketplace-only sales. Should I cancel my existing registration?

This new marketplace facilitator law does not impact the sales tax license obligations for existing registered remote sellers. 

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

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

Do I still need to file returns in Illinois?

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.

How to File as a Marketplace Seller?

You will report your interstate sales as "Marketplace Sales" on line 16 of  Schedule A when you file. 

How does this affect AutoFile for Illinois?

If you are enrolled in AutoFile, TaxJar  will file your Illinois return in accordance with Illinois law.