Georgia has enacted legislation that requires marketplace facilitators that exceed the state’s economic threshold to collect and remit tax on behalf of their marketplace sellers. Effective April 1, 2020, a marketplace facilitator has collection requirements if:
A marketplace facilitator is defined as a person that contracts with a seller to facilitate retail sales on behalf of the seller by directly or indirectly:
Platforms that exclusively process payments for retail sales are excluded from this definition.
Under the legislation, no class action can be brought against a marketplace facilitator on behalf of customers related to an overpayment of sales or use tax collected on facilitated sales. The Georgia Department of Revenue will solely audit a marketplace facilitator for facilitated sales made by marketplace sellers.
A marketplace facilitator can be relieved of liability for failure to collect and remit tax due to insufficient or incorrect information provided by a marketplace seller if the facilitator made a reasonable effort to obtain the correct information. (H.B. 276, Laws 2020, effective April 1, 2020)