Sponsored Link
Email This Post Email This Post

Bonanza Marketplace Updates Sellers on Sales Tax Changes

Bonanza marketplace
Bonanza Marketplace Updates Sellers on Sales Tax Changes

Online marketplace Bonanza updated sellers about changes it’s making to sales tax collection. It’s using third-party service TaxCloud to comply with Marketplace Facilitator laws passed by numerous states around the country.

“Many states have added Marketplace Facilitator Provisions to their sales tax laws. This means that Bonanza has sales tax nexus in those states, and is thereby responsible for calculating, collecting, and remitting tax for all sales made to buyers located in those states,” the company explained.

“As a business owner selling on Bonanza, you are responsible for collecting taxes when applicable,” it stated, but it will collect and remit sales tax on seller’s behalf for all transactions where the buyer is located in the following states:

Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington D.C., Washington State, West Virginia, Wisconsin, and Wyoming

Sellers can still set up tax rules to collect sales tax in other states. However, “Any tax rules created for the above-listed states will be overridden at checkout so that the tax is collected by Bonanza.”

Here’s the crux of what sellers need to know about the new process:

“If your buyer is located in one of the states listed above, Bonanza will collect tax on the transaction. Our partner, TaxCloud, will calculate the tax amount based on the type of product, the buyer’s location, and the location from which the item is shipped. The buyer will send a payment for the item(s), shipping (if applicable) and tax to the seller’s payment account. Bonanza will then remove the tax portion of the payment, generally displayed as a “Partner fee” on the payment receipt.”

Sellers who have further questions can email support@bonanza.com. See the full announcement on the Bonanza blog.

Ina Steiner on EmailIna Steiner on LinkedinIna Steiner on Twitter
Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.