Due to a change online marketplace Bonanza is making dealing with sales tax, sellers must take action this month or face suspension or additional fees.
Bonanza will begin collecting and remitting sales tax when transactions involve buyers residing in four states thanks to Marketplace Facilitator Laws. Sellers who accept payments through PayPal and/or Amazon Pay must authorize Bonanza to collect taxes by June 17th.
Those who accept payments through Stripe do not need to take action, but Bonanza will be collecting the tax amount when applicable.
As of June 17, 2019, Bonanza will collect and remit sales tax on seller’s behalf for all transactions where the buyer is located in Alabama, Iowa, New Jersey, and Washington State.
Sellers will continue to be responsible for collecting sales tax for other states when applicable and can adjust sales tax rules settings in the Payments & Purchases tab of their booth. Any tax rules created for Alabama, Iowa, New Jersey, or Washington State will be overridden at checkout since Bonanza will be collecting for those states.
Bonanza has partnered with TaxCloud in order to be in compliance with the new laws. Be sure to read the full announcement on the Bonanza website carefully and consult with experts if you have questions.