Biographical Information Tia Stern, Manager Sales & Use Tax, - - PDF document
Tuesday & Wednesday, January 2829, 2020 Hya Regency Columbus, Columbus, Ohio Workshop GG A Changing Marketplace Marketplace Facilitator Laws, Industry Considerations, and Technology to Help Businesses Succeed Wednesday, January
Tuesday & Wednesday, January 28‐29, 2020
Hya Regency Columbus, Columbus, Ohio
Wednesday, January 29, 2020 11:00 a.m. to 12:30 p.m.
Biographical Information
Tia Stern, Manager – Sales & Use Tax, The Wendy’s Company One Dave Thomas Blvd, Dublin OH 43017 614.764.3352 FAX: 614.764.3296 tia.stern@wendys.com Tia has over twenty-seven years of multi-state and Canadian VAT tax experience in the service, manufacturing, retail, construction, and most recently the QSR industry where she has been the Manager – Sales & Use tax for The Wendy’s Company for the past three years overseeing compliance for corporate restaurants, audits, and tax planning. Seven years ago, Tia and her husband started a small franchise business in automotive interior presentation where she manages the accounting, finance and payroll functions. Tia is a member of COST, IPT and RISTAP. She is a graduate of Franklin University with a B.A in Accounting. Susan Haffield, Partner, PricewaterhouseCoopers LLP 45 South 7th Street, #3400, Minneapolis, MN, 55402 612-596-4842 susan.haffield@pwc.com Susan Haffield is a partner in the Minneapolis office of PwC. Susan provides consulting services focusing on indirect tax strategy, audit defense, refund analysis, structures, sales tax reserves, process improvements, e commerce, and nexus evaluations. She also specializes in indirect taxes associated with the retail and consumer products industries. Susan has been actively involved in the Business Advisory Council of the Streamlined Sales Tax initiative. She is a frequent speaker for organizations such as Council on State Taxation, Ohio Tax Conference, Paul J Hartman SALT Forum, Institute for Professionals in Taxation, Tax Executive Institute, and New York University. Susan has over 30 years of experience. In addition to her experience in public accounting, Sue was a manager in the Cargill tax department where she focused on indirect taxes and state and local income taxes. She joined PricewaterhouseCoopers in June 2002. Sara A. Caldwell, Esq., CPA, Legal Counsel, Ohio Department of Taxation 4485 Northland Ridge Blvd. Columbus, OH 43229 614-995-0990 Fax: 614-728-1806 Sara.Caldwell@tax.state.oh.us Sara began her career with the Ohio Department of Taxation in 2012 and is currently employed as legal counsel for motor fuel tax, international fuel tax agreement (“IFTA”), gross casino revenue tax, alcoholic beverages taxes, horse racing tax and replacement tire fee. Sara additionally assists with matters on other taxes including public utilities, tobacco and sales tax. Sara’s primary responsibilities include providing legal advice to department personnel, reviewing legislation, drafting information releases and responding to requests for tax commissioner and informal
Sara was previously employed as an attorney in the Appeals Management Division and served as a liaison between the department and the Taxation Section of the Ohio Attorney General’s
real estate tax exemption related matters. Sara graduated from Ohio University with a B.B.A. in Accounting and the University of Toledo College of Law. Sara is licensed to practice law in the State of Ohio and maintains an active Ohio CPA license.
Sara Caldwell Legal Counsel, Ohio Department of Taxation sara.caldwell@tax.state.oh.us Tia Stern The Wendy’s Company Tia.Stern@wendys.com Susan Haffield PwC susan.haffield@pwc.com
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Exam ple: Marketplace Facilitator - A person that facilitates the retail sale of tangible personal property or digital property by listing or advertising the tangible personal property for sale at retail and either directly or indirectly through agreements or arrangements with third parties, collects the payment from the purchaser, and transmits the payment to the person selling the property
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Three distinct legislative m odels:
sales tax.
comply with the ‘Colorado-style” information reporting requirements.
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Definition of “Seller” “A m arketplace facilitator shall be treated as the ‘seller’with respect to all sales facilitated by the m arketplace facilitator on behalf of one
” R.C. 5741.01(E) Not subject to the Ohio “marketplace facilitator” laws:
collection, payment processing or virtual currency provided
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Ohio Definitions – See R.C. 5741.0 1(T) a nd (U)
Marketplace facilitator
m arketplace
Marketplace seller
tangible personal property for storage, use or consumption in Ohio or
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W ha t is a n electronic m a rketp la ce?
Note – la w a lso a p p lies to p hy sica l m a rketp la ces See R.C. 5741.01(V)
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W ha t d oes it m ea n to “fa cilita te” reta il sa les?
A m arketplace facilitator must directly or indirectly do any of the following:
sale
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W ha t d oes it m ea n to “fa cilita te” reta il sa les? (con’t)
A m arketplace facilitator must also (directly or indirectly) do any of the following:
marketplace seller, regardless of whether the third party receives compensation or consideration
See R.C. 5741.01(W)
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Econom ic nexus
$100,000 or 200 or more separate transactions
taxable transactions in determining thresholds
the number of items on an invoice
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How to d eterm ine w hen econom ic nexus is m et?
file began Septem ber 1, 20 19
after the first day of the first month that begins at least thirty days after the marketplace facilitator first has substantial nexus with this state.” R.C. 5741.01(E)
Ohio on Decem ber 15, 20 19. The facilitator must begin collecting and remitting on February 1, 20 20 .
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Prior Nexus Standards
Rep ea led :
for referral of customers with gross receipts in excess of $10,000
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Exam ple 1:
Ohio during the current calendar year. $5,000 of those sales are exempt sales. None of my individual sellers have physical presence or
and collection obligation with the State of Ohio?
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Exam ple 1:
sellers have substantial nexus or for the sales to be taxable sales. However, if all sales into Ohio are exempt sales, you would not be required to register and file sales tax returns.
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Exam ple 2:
marketplace facilitator and on my own website. During the prior calendar year, I sold $85,000 of goods to Ohio customers through the marketplace facilitator and $20,000 of goods into Ohio on my website. Am I required to register and collect sales tax for the goods sold on my website?
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Exam ple 2:
marketplace facilitator sales when determining whether the seller meets the economic nexus standards.
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sa les. Should I register for one or tw o a ccounts?
account for facilitated sales and file a return for each.
a nd on m y ow n w ebsite. How should I rep ort sa les m a d e through a fa cilita tor on m y sa les ta x return?
through a marketplace facilitator as exempt sales on line 2.
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a m arketplace facilitator collect use tax on the seller’s sales if the seller:
from affiliates);
exchange;
Taxation not subject to a bona fide dispute;
to the same m arketplace facilitator within the last 12 months; and
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motors are sourced to the consumer’s county of residence.
vendors to Ohio consumers.
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Ohio Law
which it is treated as the “seller” pursuant to R.C. 5741.01(E).
seller on behalf of which the sale was facilitated. See R.C. 5741.13 Departm ent Outreach
Recom m endations
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amnesty program for remote sellers/ marketplace facilitators
available to sellers/ facilitators prior to Department contact
tax.ohio.gov/ Forms.aspx
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collect and/ or collected and failed to remit
facilitator based on any information in the Tax Commissioner’s possession Exception:
effort to obtain sufficient and accurate information about the sale from the unaffiliated marketplace seller and
correct amount of tax because of insufficient or incorrect information provided by the marketplace seller. See R.C. 5741.11
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facilitator is appealable by filing a petition for reassessment within sixty (60) days.
assessment or final determination.
Board of Tax Appeals.
m arketplace seller is a party to the petition and any subsequent appeals.
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goods or services?
to)?
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party sellers?
classify the marketplace relationships accurately?
sales that are not through the marketplace.
information on their products.
non-marketplace collection states?
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provider
Restaurant #4 Restaurant #1 Restaurant #2 Restaurant #3
Facilitator
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restaurant Tax issues: Sourcing/ rate differential Application of local food and beverage taxes
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products
store
as defined in sales tax statutes
Tax Issues: Facilitator is the only party with ability to collect tax from customer. Is the delivery fee subject to tax? Facilitator
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provider
delivery provider delivery fee
provider
Restaurant #4 Restaurant #1 Restaurant #2 Restaurant #3
Facilitator
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web delivery orders
customer Tax issues: Restaurant will need to “turn off” tax collection for these sales and have a mechanism to track sales made through website/ mobile app Should the facilitator issue a resale certificate to restaurant? Any exposure on food and beverage taxes in jurisdiction where restaurant is located?
Restaurant #1 Restaurant #2 Restaurant #3 Restaurant #4
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Facilitator company may facilitate its own sales in addition to this marketplace Delivery company does not interact financially with the customer Tax Issues: Is delivery charge a resale? If not, is it taxable to the facilitator?
Tax Software:
Must be cloud based for real time determinations Calculate tax only on facilitated transactions
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