If you’re selling on BlackSpace, you might notice we automatically collect and remit sales tax for certain orders. This happens because of “Marketplace Facilitator Laws.” Here’s what you need to know, explained simply.
What is a marketplace facilitator?
A marketplace facilitator is an online platform—like BlackSpace—that connects sellers and buyers, processes payments, and facilitates transactions. Because we manage these key aspects, states require us to collect and remit sales tax on behalf of our sellers when we meet specific sales thresholds (known as “nexus”).
Why does BlackSpace collect tax?
BlackSpace is based in Minnesota and operates nationally. Because we have a physical presence (nexus) in Minnesota, we’re required by Minnesota law to collect sales tax on sales made to customers in Minnesota. Additionally, we collect and remit sales tax in other states whenever our sales meet or exceed that state’s nexus thresholds.
Where does BlackSpace collect taxes?
Example scenario:
Imagine you’re based in Texas and sell an item for $40 to a buyer in Minnesota. At checkout, BlackSpace automatically adds Minnesota sales tax (for example, 7% = $2.80). The buyer pays $42.80. BlackSpace then remits the $2.80 directly to Minnesota’s Department of Revenue. You simply fulfill the order—no need to worry about the tax collection or remittance.
Important things for sellers to remember:
- BlackSpace’s tax collection is mandatory in all states where we have nexus.
- You cannot opt out; this is a legal obligation.
- This simplifies your tax responsibilities for sales made through BlackSpace.
- If you sell through other channels, you might still be responsible for collecting and remitting tax on those sales.
We’re not tax advisors
BlackSpace provides this information to help you understand marketplace facilitator laws, but we don’t provide individual tax advice. For personalized advice, please consult a tax professional or accountant.
Helpful resources:
For specific questions about how taxes are managed on BlackSpace, contact our support team—we’re here to help!
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