About marketplace facilitator tax (US only)
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 Shopping Actions merchants to Google. In accordance with these laws, Google will collect and remit taxes for Shopping Actions products sold in states with marketplace facilitator laws. These states currently include:
- New Jersey
March 1, 2019
- South Dakota
April 1, 2019
- Washington, DC
June 1, 2019
- New York
June 27, 2019
- Rhode Island
July 1, 2019
- New Mexico
- West Virginia
October 1, 2019
- North Dakota
January 1, 2020
This list may grow as additional states pass similar legislation over time.
This article explains how marketplace facilitator tax is be applied to your Shopping Actions 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.
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.