The Texas Comptroller’s Office is participating in the Multistate Tax Commission (MTC) Online Marketplace Seller Voluntary Disclosure Initiative, which is designed to bring into compliance out-of-state (OOS) taxpayers who sell products in Texas and other states through online marketplaces.
NOTE: This program does not apply to those OOS sellers that have nexus due to a physical presence (i.e., attending trade shows, presenting products and taking orders) and may have employees located in Texas. In addition, any business that has already been contacted by the Texas Comptroller about their tax responsibilities, including a routine audit or Criminal Investigation, will not qualify for this program. Finally, these MTC agreements also do not waive any taxes collected but not remitted.
It is our understanding that ‘online marketplace’ activity means that the out-of-state (OOS) seller is selling products through: (1) fulfillment centers such as Amazon.com and (2) taking orders for products from a call center physically located in Texas. It is not known if this program is meant to include those OOS sellers which have what is called ‘click through nexus’.
The MTC is accepting applications for this program Aug. 17 – Oct. 17, 2017. Taxpayers must make their requests for agreements through the MTC, and those who qualify must be registered and start collecting taxes as of Dec. 1, 2017. The program covers Texas sales and use and franchise taxes. More information about applying for the program is available at the Multistate Tax Commission (MTC) Online Marketplace Seller Voluntary Disclosure Initiative.