Tennessee DOR Letter Ruling Holds that Marketplace Facilitator Fees are Not Subject to Tax

A recent Tennessee Department of Revenue ruling concluded that certain charges to third parties made by a delivery network company electing to be a marketplace facilitator are not subject to Tennessee sales and use tax, because the company’s nontaxable lead generation and payment processing services are the true object of the transactions at issue, and the taxable components are merely incidental to them.

Source Deloitte

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