We at RevolutionParts are proud to announce our newest sales tax compliance feature for dealerships and manufacturers that are selling parts and accessories online. The RevolutionParts Marketplace Tax Comply calculates a buyer’s state sales tax, collects the proper sales tax amount, reports to the proper state jurisdiction, and remits the sales tax collected on behalf of the manufacturer and dealer.
Many states have Marketplace Facilitator laws governing the sales tax collection of products distributed by sellers online. In short, the seller is held responsible for calculating, collecting, reporting, and remitting sales tax charged on all orders and sales through an online marketplace. These sales tax collection requirements occur when a seller is either:
- Physically located in a state
- A warehouse or storage facility resides in a state
- A specified amount of orders
As of now, RevolutionParts is the only automotive parts eCommerce provider that offers a solution to relieve dealers of the responsibility and complexities associated with sales tax collection.
In this diagram, we demonstrate exactly how our Marketplace Tax Comply feature works. When a customer places an order through a RevolutionParts Dealer Web Store:
1. Sales tax is calculated for the state using the customer’s billing address
2. After the customer pays, the dealer collects the payment for the order and shipping
3. RevolutionParts processes and remits the sales tax from the order
4. On behalf of the dealer, RevolutionParts releases the sales tax collected and tax reports to the correct states’ taxing authorities
Auto dealers and dealer groups can use Marketplace Tax Comply to reduce time spent calculating and remitting taxes. Not only does it help dealers sell more parts faster and dedicate more time to their buyers, but it also creates simplicity and ease-of-mind when it comes to tax compliance. This diminishes any legal exposure that would come about from violating different state tax laws and pushes all liability on RevolutionParts. Not to mention the benefit of avoiding costly fines associated with a potential audit!
If your dealership is selling parts and accessories online, download our free checklist to make sure you’re sales tax compliant!
Contact us today and learn how RevolutionParts helps you sell more parts and accessories while maintaining compliance with sales tax laws for dealerships and manufacturers.
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