RevolutionParts Marketplace Tax Comply (MTC) is an opt-in feature available exclusively to RevolutionParts customers. This feature allows RevolutionParts to take care of sales tax on your behalf by acting as the marketplace facilitator. Simply put, RevolutionParts MTC shifts the burden of sales tax compliance and collection in the United States from you to RevolutionParts.
- How do I enroll in MTC?
1. Log into your account at manage.revolutionparts.com.
2. Ensure you provide a bank account to make AHC payments for taxes owed
3. Click the gear icon in the top right-hand corner of the navigation bar to access your settings.
4. Click "Tax" on the left-hand navigation bar > click “Marketplace Tax Comply.”
5. Click the red “Enroll” button > complete your information > click “Continue”
6. Read the terms of service > check the box to agree to the terms > click the red “Accept” button.
- How do I add a bank account for taxes owed?
To add a bank account to your RevolutionParts account:
1. From the Billing Methods page, click “Add Bank Account.”
2. Fill out the Billing and Bank Information.
3. Read and accept the terms.
4. Click the red "Save" button on the top-right corner.
Why should I worry about sales tax outside of my home state?
As a result of the June 2018 US Supreme Court ruling in Dakota v. Wayfair, any jurisdiction you are completing transactions in can require you to collect, report, and remit sales taxes. Thus far 48 states have enacted such requirements.
What is economic nexus?
A nexus is either a physical or economic threshold used to determine if you are liable for sales tax compliance. Physical nexus means you have physical presence in the jurisdiction (such as a retail outlet or warehouse). Economic nexus means that you have achieved a certain order or revenue volume. The sales threshold varies by state, please see this overview. Note: The economic nexus rules are complex, especially if you are part of a larger multi-state parent company, please consult your tax professional.
What is the RevolutionParts Marketplace Tax Comply (MTC) program?
Much like Amazon, eBay, or other online marketplaces, the RP MTC program assumes the liability for tax collection, reporting, and remittance for sellers using the platform.
What sales are included in the RevolutionParts Marketplace Tax Comply monthly fee calculation?
Short Answer: All electronically prepaid sales finalized through a web store, email quote, phone order, or website plugin roll into the total sales for RevolutionParts Marketplace Tax Comply. Purchase orders or inquiries that are paid via “offline” or custom payment methods such as pay-on-pickup, wires, charge account, cash-on-delivery, paper checks, etc. are exempt from the tax fee calculation. In addition, any sales from third-party marketplaces (Amazon, eBay, Walmart, etc.) are not included; those marketplaces generally have their own tax compliance programs.
Why are sales with no sales tax or tax exempt sales included in the monthly RevolutionParts Marketplace Tax Comply fee calculation?
RevolutionParts is responsible for the record keeping and compliance risk for sales with no sales tax or sales that are tax exempt—because of that risk RevolutionParts includes these sales in the fee calculation.
Are transactions from my local wholesale accounts included under the MTC program?
Only if they pay for the parts electronically through the RP platform. All orders charged via check, cash-on-delivery, or charge account / invoice are not considered a MTC transaction and are excluded from any MTC fees.
Is RevolutionParts collecting, reporting, and paying sales tax “on behalf of” the sellers?
No, RevolutionParts is taking on the role of the seller as it applies to sales tax under the various states' marketplace facilitator laws. This means RevolutionParts is directly liable for the sales tax owed, related compliance and potential audits.
How are sales tax providers such as TaxJar, Vertex, or Avalara different from RevolutionParts Marketplace Tax Comply?
These are tools that companies will use to calculate, collect, report, and remit taxes. With these tools the company takes on the responsibility of determining what jurisdictions they must pay taxes into, the collecting/remittance of taxes and the risk of an audit. You no longer have those obligations when you enroll with RevolutionParts Marketplace Tax Comply—please refer to our Terms of Service for more details.
Will all of a seller's customers be charged sales tax upon enrollment?
Yes, if a buyer lives in a state with a remote seller tax law, then the buyer will be charged sales tax. In the early years of online shopping this may have been a large concern. However, with the new sales tax rules, buyers enjoy the convenience of online shopping and are accustomed to pay sales tax when shopping online.
How often is the sales tax withdrawn from the seller's bank account?
The sales tax owed is withdrawn as frequently as once per week and no less frequently than once per month. You will receive a receipt with the sales tax amount debited along with a detailed report for your records.
Can a seller enroll in RevolutionParts Marketplace Tax Comply pay by invoice/check or a credit card?
No, a seller must have a bank account on file and agree to automatic bank debits in order to enroll and stay enrolled in the RevolutionParts Marketplace Tax Comply program.
How can a seller reconcile the sales tax amount collected?
RevolutionParts provides a detailed report with order number, amount, sales tax amount, DMS invoice number, gateway transaction ID, and more. The seller can reconcile this report against each bank account debit of sales tax.
What states are covered under MTC?
Sellers in any state may sign up for MTC. As your marketplace facilitator, it is RevolutionParts sole responsibility to monitor which jurisdictions we should collect sales tax from buyers. Currently buyers located in AZ, CT, ID, MS, OH, PA, RI, TX, UT, WA, FL, CA, GA, IL, MI, MN, NJ, NC, VA, CO, NV, WI, AL, AK, AR, DC, HI, IN, IA, KS, KY, LA, ME, MD, MS, NE, NM, NY, ND, OK, SC, SD, TN, VT, WV, and WY will see sales tax from sellers participating in the MTC program.
What are the risks of not complying with states sales tax laws?
By not collecting sales tax in jurisdiction where you are required, you risk to have to pay years of sales tax (may vary but typically 5-9% of sales) plus fines and legal costs. Sign up with RevolutionParts MTC today!
- Is there a fee associated with the MTC program?
Yes, RevolutionParts collects a monthly fixed fee of $50 + 0.4% Service Transaction Fee on all orders.