- Inquiry Overview: The Illinois Department of Revenue responded to an inquiry from a foreign company involved in card payment processing and fraud prevention services for international e-commerce merchants. The inquiry focused on the company’s classification under Illinois sales and use tax law.
- Marketplace Facilitator Definition: The Department concluded that the foreign company does not qualify as a “marketplace facilitator” under Illinois law because it does not operate a marketplace that lists or promotes products for sale by other sellers.
- Tax Implications: Additionally, the letter clarified that a payment processing system that works in the background of a third-party retailer’s e-commerce platform does not qualify as the “retailer” for purposes of the Illinois retailers’ occupation tax (ROT).
Source Deloitte
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