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Platform Economy: Will The Real Tax Collector Please Stand Up?

U.S. sales tax legislation refers to platforms as marketplaces. All U.S. states that levy a sales tax have enacted laws requiring platform operators that qualify as marketplace facilitators and have nexus with a state to collect and remit tax on behalf of retailers selling through the platform. Although most state laws define a “marketplace facilitator” in a similar way, it’s important to read them carefully as even a minor difference in the wording may lead to completely different tax consequences.



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