- Illinois clarified that payment processors are not automatically responsible for collecting sales tax.
- A payment processor is only considered a marketplace facilitator if it both lists/advertises products and collects payments for sellers.
- Simply processing payments or briefly holding title to goods does not make a company liable for sales tax.
- The ruling reassures payment processors and e-commerce businesses that handling payments alone does not trigger Illinois sales tax obligations.
Source: salestaxinstitute.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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