About marketplace facilitator tax

 

Marketplace facilitator tax is a term for legislation passed in the United States by individual states. This legislation has shifted tax collection and remittance responsibilities from Buy on Google retailers to Google. In accordance with these laws, Google will collect and remit taxes for Buy on Google products sold in states with marketplace facilitator laws. These states currently include:

January 2019	Alabama Connecticut Iowa Oklahoma Minnesota New Jersey Pennsylvania Washington
March 1, 2019	South Dakota
April 1, 2019	Washington, DC
June 1, 2019	Idaho Nebraska New York
June 27, 2019	Rhode Island
July 1, 2019	Arkansas Indiana Kentucky New Mexico South Carolina Vermont Virginia West Virginia Wyoming
September 1, 2019	Ohio
October 1, 2019	Arizona California Colorado Maine Maryland Massachusetts Nevada North Dakota Texas Utah
January 1, 2020	Hawaii Illinois Michigan Wisconsin
February 1, 2020	North Carolina
April 1, 2020	Georgia
July 1, 2020	Louisiana Mississippi
October 1, 2020	Tennessee
July 1, 2021	Florida Kansas

Note: This list may grow as additional states pass similar legislation over time.

This article explains how marketplace facilitator tax is being applied to your Buy on Google products.

How it works

Google will determine the tax rate in applicable states by using any Google Product Categories that you supply in your feed. Learn more about Google Product Categories

In states that have marketplace facilitator tax laws, your products are taxed in accordance with those laws. For orders in these states, Google remits the tax directly to state tax authorities. You're unable to refund or alter tax on orders in these states.

In states that don't have marketplace facilitator tax laws, Google passes any taxes collected back to you, and you are responsible for remitting taxes as applicable. You're also able to refund or alter taxes at the time of order shipment.

For states that have marketplace facilitator tax laws, if you haven't provided Google Product Categories in your product data, tax rates will be automatically determined and applied by Google. Because Google cannot guarantee the categorization is correct in these circumstances, in order to provide the best experience to your customers, we suggest upgrading your feed to provide Google Product Categories. For states that don't have marketplace facilitator tax laws, the tax rate will continue to be calculated as it is today - using your Merchant Center tax settings or your tax overrides in the feed. Learn more about configuring tax in Merchant Center

Google will make every effort to calculate tax as accurately as possible. However, because you have the most familiarity with your product assortment, it's strongly recommended that you supply Google Product Categories in order to help ensure that customers pay the tax amounts that they expect to see.

Related links

• google_product_category: Definition
• About tax settings
• Set up tax settings

Need help? Click here to contact Buy on Google support.