- The Wisconsin Court of Appeals ruled that StubHub is considered a “seller” under state law and must pay sales tax on ticket sales from 2008 to 2013.
- StubHub is liable for $8.5 million in back taxes plus $8.5 million in interest, penalties, and fees, including a 25% negligence penalty for ignoring tax guidance.
- The Court rejected StubHub’s argument that it was merely a passive facilitator or auctioneer, citing its active role in processing transactions and handling payments.
- The Court found that the 2019 Marketplace Provider Law did not exempt StubHub from tax liability for the years in question.
- StubHub’s business model, including exclusive ticket listings and buyer guarantees, contributed to the Court’s decision that it functioned as a seller.
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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