In accordance with the new Marketplace Facilitator laws being enacted throughout the United States, athleteReg has implemented technology to facilitate collecting and remitting state sales tax on behalf of our event directors in qualifying states.
If your event takes place in a marketplace state, we will now collect and remit sales tax on your behalf beginning June 1st, 2020. We’ll take care of real-time calculations, collection, and compliance, and provide you with accurate reporting and peace of mind.
We’re embracing these laws and their complexity, and in the broader scope of what we do as a company, we see it as a way to provide additional services to our clients by taking on the burden of tracking legislation, and collecting and remitting taxes.
What is the Marketplace Facilitator Law?
The Marketplace Facilitator laws, which vary state-by-state, are the result of the landmark Supreme Court decision in South Dakota v. Wayfair. This legislation requires marketplace facilitators (in our case, athleteReg) to collect and remit sales tax on behalf of their third-party sellers’ (you, our event directors) transactions. For states, these laws simplify tax collection, because they can collect from fewer entities. For sellers, the benefit lies in having sales tax for certain transactions handled by athleteReg, the facilitator.
What if my event is run by a nonprofit?
We’re glad you asked! You, as the event director, can now indicate if your event is hosted by a nonprofit entity. Depending on the state in which the event is hosted your participants may not be required to pay sales tax.
By including the necessary documentation in the event setup to prove nonprofit status, athleteReg will automatically determine whether or not to apply tax on specific items or event registrations and will automatically charge tax when required. Read more here.
Where can I learn more?
We’ve built a Sales Tax Information Page where you can access all of our tax resources and get your questions answered.
Click through here.
Please note that athleteReg cannot offer tax or legal advice and is sharing this data for informational purposes only.