Effective Date: January 1, 2019 for remote sellers (administrative notice) July 1, 2019 for marketplace facilitators (specific legislative enactment)
Threshold: $100,000 or 200 or more separate transactions
Measurement Date: The immediately preceding or current calendar year
Includable Transactions: Gross sales
When You Need to Register Once You Exceed the Threshold: Next transaction
West Virginia has enacted legislation that requires remote sellers, marketplace facilitators, and referrers that satisfy the state’s economic nexus requirements to collect use tax, effective July 1, 2019. West Virginia previously issued an administrative notice containing economic nexus provisions for out-of-state sellers, effective January 1, 2019. The new legislation codifies the state’s economic nexus rules.
Remote sellers, referrers, and marketplace facilitators are required to collect and remit use tax on all taxable sales of tangible personal property or services made on its own behalf or facilitated for marketplace sellers. A remote seller, referrer, or marketplace facilitator shall collect tax when, in the immediately preceding or current calendar year:
Under the legislation, a “remote seller” means a seller that does not have physical presence in West Virginia that sells tangible personal property or services to in-state purchasers that are subject to sales or use tax under the state’s economic nexus legislation.
A “marketplace facilitator” is defined as a person that contracts with one or more sellers to facilitate (for consideration) sales of the seller’s products through an electronic of physical marketplace. A marketplace facilitator engages in activities, directly or indirectly, such as communicating offers between buyers and marketplace sellers, owning or operating electronic or physical infrastructure that brings together buyers and sellers, or providing a virtual currency used by purchasers.
A marketplace facilitator also may provide payment processing services, fulfillment or storage services, advertising or promotion, or customer service for marketplace retailers.
A “Referrer” is a person, other than a person engaged as a printer or publisher of a newspaper, who contracts or otherwise agrees with a seller to list or advertise for sale items in any medium including a website or catalog and receives a commission, fee or other consideration from the seller for the listing; transfers the purchaser to the seller to complete the sale and does not collect receipts from the purchaser for the transaction.
(H.B. 2813, Laws 2019, effective July 1, 2019 for marketplace facilitation)