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US Marketplace Facilitator Tax Law

US Marketplace Facilitator Tax Law2019-07-12T01:21:56-05:00

General Marketplace Discussion (User’s interaction forum)

US Marketplace Facilitator Tax Law Open

  • Author
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  • CentralW
    Participant
    Post count: 100

    Hello again 🙂

    I am not sure if you all are aware of the tax laws happening in the United States, but basically as a Marketplace facilitator I am required to collect and submit taxes from specific states (not all at this point) on behalf of the vendor. A major problem that I have run into that is preventing me from launching my site is the fact that I cannot choose to collect tax from specific states no matter which vendor is selling the item.

    Let me give you some examples for a little more clarification. The current tax set up for WMCp/WooCommerce works perfectly if I were a single seller and not a Marketplace.

    But let’s say Vendor 1 sells an item being shipped to Poopville State. I am required as Marketplace admin by law to collect tax for Poopville State. Therefore any sales for Vendor 1 (or ANY sales for any vendor) to Poopville State must be sent directly to me, admin.

    But let’s say same Vendor 1 makes another sell shipping to Greentown. Well, I’m not required to collect any tax for Greentown so Vendor 1 can receive the tax for that sell.

    Currently, it is either ALL tax is sent to vendor or to admin, and not able to pick which states can go directly to admin and others to vendor.

    Do you see the issue and understand what it is United States users need? We need to be able to select to have taxes from certain states go to admin no matter the vendor selling the product. While taxes for other places may be sent to the vendor.

    It could be under the Tax settings…or an extension like a table rate for taxes where we could set “rules” on who should get the tax and when (admin or vendor).

    This seems like it wouldn’t be too hard to accomplish…but then again I’m not a plug-in pro like you guys at WCMp are 🙂

    Is this something that is doable SOON. This is the only thing keeping me from launching as this could leave me in big trouble with the law.

    Please help! Thank you kindly.

  • NerdySupportExpert Moumita
    Keymaster
    Post count: 5714

    @centralw, thanks for explaining the tax law to us.

    However, you can do custom code and add this module. For this, you need to check the states from the order, now by checking the state, you need to pass whether admin or vendor will receive the tax.

    For this, you need to use this filter – apply_filters('wcmp_commission_transaction_amount', $transaction_total, $this->vendor->id, $this->commissions, $this->payment_gateway)

  • NerdySupportExpert Moumita
    Keymaster
    Post count: 5714

    @centralw, also we have looked into this link – https://docs.google.com/spreadsheets/d/e/2PACX-1vS5fTjXd-KsIaIwCxhdt6_1Vdtu8jK_AWiKdAgAIptHUj2NCnxGQJ07FeffoAEgGhjIzF6VNY8mSfTP/pub

    So, how do you want to handle the threshold limit for the tax part? Your input will help us better implementing this module.

  • CentralW
    Participant
    Post count: 100

    Could threshold limit be set for each state so when the admin is approaching the limit for that state admin will be aware?

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