Notice for Remote Sellers and Marketplace Facilitators
Effective April 1, 2019
The Nebraska Legislature recently enacted LB 284, clarifying that remote sellers (those without a physical presence) selling tangible property and services subject to Nebraska sales tax must obtain a sales tax permit from the Nebraska Department of Revenue (DOR) and begin collecting and remitting Nebraska and local sales tax if their retail sales (all sales other than resale), including sales made through a Multivendor Marketplace Platform (MMP), in Nebraska exceeded $100,000 in the previous year or current calendar year, or if the seller made 200 or more separate Nebraska retail sales transactions in the prior calendar year or current calendar year.
If the remote seller did not exceed either of these thresholds in 2018, when one of the thresholds is exceeded for the first time, the seller must obtain a sales tax permit and begin collecting and remitting sales tax on or before the first day of the second calendar month after the threshold(s) are exceeded. Remote sellers must begin collecting sales tax effective April 1, 2019 if they exceeded the threshold amount in 2018 or by the end of February 2019.
Remote sellers exceeding the threshold who make sales through an MMP, also known as a marketplace facilitator, must file sales tax returns reporting all of their Nebraska sales, but are relieved of the duty to collect and remit the sales tax on sales facilitated by the MMP if the MMP has reported and remitted the tax to DOR.
LB 284 also provides that MMPs that exceed these same threshold(s) are retailers and must obtain a permit and begin collecting and remitting Nebraska and local sales taxes on sales they facilitate for others that are delivered or sourced to a Nebraska address.
Remote sellers, including MMPs, must begin collecting sales tax on April 1, 2019 if they exceeded the threshold amount in 2018 or the first two months of 2019. The first Nebraska and Local Sales and Use Tax Return, Form 10, for tax period April 2019 was due May 20, 2019.
Remote sellers, including MMPs, who exceed the threshold in March or later in 2019 must obtain a sales tax permit and begin collecting and remitting sales tax on or before the first day of the second calendar month after the threshold(s) are exceeded.
Remote sellers who exceed the threshold must report all their Nebraska sales to DOR. Sellers using MMPs will be able to take a deduction from total sales for sales made through an MMP that is collecting sales tax on your behalf to arrive at Nebraska net taxable sales.