New Jersey Implements Marketplace Facilitator Law

Last Updated on December 28, 2021

Beginning November 1, 2018, P.L. 2018, c. 132 imposes Sales Tax registration, collection, and remittance requirements on marketplace facilitators. A marketplace facilitator is required to collect Sales Tax on sales of tangible personal property, specified digital products, and services delivered into New Jersey, which are made by a marketplace seller through any physical or electronic marketplace owned, operated, or controlled by the marketplace facilitator.

A marketplace seller is a seller that makes retail sales through any physical or electronic marketplace owned, operated, or controlled by a marketplace facilitator. A marketplace seller may be a remote seller, or a seller with physical presence in New Jersey.

Marketplace sellers are not required to collect and remit sales tax on sales when a marketplace facilitator is required to collect and remit sales tax on the transaction.

A marketplace facilitator is required to collect and remit sales tax on sales made through any physical or electronic marketplace owned, operated, or controlled by a marketplace facilitator. This is true even if the marketplace seller is registered with New Jersey for the collection and remittance of sales tax. However, a marketplace facilitator and marketplace seller are permitted to enter into an agreement with each other regarding the collection and remittance of sales tax.