Maryland Requires Marketplace Facilitator to Collect Tax

Oct 7th, 2019

As of October 1, 2019, Maryland requires marketplace facilitators to collect sales and use tax when they meet certain thresholds during the previous or current calendar year. The thresholds are (1) more than $100,000 in gross revenue from sales of tangible personal property or taxable services, or (2) at least 200 or more separate transactions into Maryland. The thresholds include direct and facilitated sales. Wholesale sales and exempt sales also count towards the thresholds.

A retailer who sells through a marketplace does not have to collect tax on its facilitated sales if the facilitator collects tax. Note that facilitators report direct sales and facilitated sales separately.