Sales Tax Update on Bonanza

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Hello, Bonanzlers! Shelly here, with an update on everyone's favorite topic - taxes! As you are aware, many states have added Marketplace Facilitator Provisions to their sales tax laws. This means that Bonanza has sales tax nexus in those states, and is thereby responsible for calculating, collecting, and remitting tax for all sales made to buyers located in those states.

What is sales tax nexus? Sales tax nexus is the connection between a seller and a state that requires the seller to collect and remit tax on sales made to buyers in that state.

As a business owner selling on Bonanza, you are responsible for collecting taxes when applicable. However, thanks to a partnership with TaxCloud, Bonanza will collect and remit sales tax on seller's behalf for all transactions where the buyer is located in the following states:

Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington D.C., Washington State, West Virginia, Wisconsin, and Wyoming

We recommend all sellers consult a tax professional in their state to determine their tax obligations. In this page and throughout our site, Bonanza is not acting as a tax advisor and is not able to provide tax advice, but we do want to keep you updated about recent law changes that impact our site.

How is this different from how Bonanza has handled sales tax in the past?

Until these changes were enacted in 2019, Bonanza as a marketplace did not collect sales tax. Sellers had an option to set up sales tax rules in the Payments & Purchases tab of their booth, but we’ve always left it up to the seller to determine which tax rules apply to their business. Sellers were then responsible for remitting the tax funds to the relevant state. This process will remain unchanged for all states except for the ones named above. You are welcome to create tax rules in your booth for all other states. Any tax rules created for the above-listed states will be overridden at checkout so that the tax is collected by Bonanza.

How will this impact checkout?

If your buyer is located in one of the states listed above, Bonanza will collect tax on the transaction. Our partner, TaxCloud, will calculate the tax amount based on the type of product, the buyer’s location, and the location from which the item is shipped. The buyer will send a payment for the item(s), shipping (if applicable) and tax to the seller’s payment account. Bonanza will then remove the tax portion of the payment, generally displayed as a “Partner fee” on the payment receipt.

It’s likely that other states will enact Marketplace Facilitator Provisions, which will then require Bonanza to collect tax on additional transactions. We will notify sellers on our Sales Tax and Bonanza page. We’re working closely with our partners at TaxCloud to ensure we use the most up-to-date tax rates and regulations. Bonanza sellers are also welcome to use TaxCloud to manage their individual sales tax collection and remittance. Learn more about using TaxCloud for your business.

We have worked hard to ensure this change in tax law would transition smoothly for all sellers. If you have any specific questions not on our Sales Tax and Bonanza page just drop a note to support@bonanza.com.


25 responses to Sales Tax Update on Bonanza

  • lumpsofstuff says:
    03/03/20 at 19:15:54

    Thank you for the clear and concise explanation/update.

    BonanzaShelly says in response:
    03/04/20 at 05:42:04

    You’re welcome!

  • DiVASHACK says:
    03/03/20 at 19:53:50

    I’m glad it is automatic, and taken care of in the sale for us. Easy to comply with :)

    BonanzaShelly says in response:
    03/04/20 at 05:44:53

    Our goal is to simplify where we can. Thanks, DiVASHACK!

  • ooak says:
    03/03/20 at 20:12:49

    AWESOME ! THANK YOU !

    BonanzaShelly says in response:
    03/04/20 at 05:46:59

    Welcome!

  • somthinspecl says:
    03/03/20 at 20:12:58

    Are you collecting for Florida?

    BonanzaShelly says in response:
    03/04/20 at 06:31:04

    Hi Somthinspecl! Not at this time. Florida has not yet enacted the law.

  • BANYER says:
    03/03/20 at 22:55:09

    Hello. If I’m based overseas, example Australia am I still liable to be charged tax for the above stated states? If not what should I do? Please advise.

    BonanzaShelly says in response:
    03/04/20 at 06:34:30

    Hi Banyer, The tax is dependent on the location of the buyer, we are collecting and remitting applicable taxes on your behalf. If you have any other questions you can contact support@bonanza.com.

  • Bluelucy says:
    03/04/20 at 01:11:58

    Thank you for doing this. Now I do not have to worry about having to file tax paperwork and pay fees in forty some states.

    BonanzaShelly says in response:
    03/04/20 at 06:41:08

    Glad to help! Thanks for being a part of our selling community!

  • abigdogmom says:
    03/04/20 at 02:12:20

    Thank you for taking this step to help sellers with the tax issue. There is no way I could know the tax rules and regulations for every state, city and county.

    BonanzaShelly says in response:
    03/04/20 at 06:44:41

    No problem, abigdogmom! We are happy to help.

  • ccmom says:
    03/04/20 at 03:27:08

    thanks for the update

    BonanzaShelly says in response:
    03/04/20 at 06:45:00

    You’re welcome!

  • LisasTreasures4U says:
    03/04/20 at 03:41:08

    Thank you!

    BonanzaShelly says in response:
    03/04/20 at 10:19:31

    You’re welcome Lisa!

  • Ms_Prissys_Patterns says:
    03/04/20 at 04:18:39

    Thank you.

  • fantazy007 says:
    03/04/20 at 05:15:28

    The tax is unfair to consumers and small online businesses

  • Bootsies_Prom_Party says:
    03/04/20 at 05:25:48

    Excellent, thank you so very much for the information and the service!!

  • Bootsies says:
    03/04/20 at 05:27:12

    Thank you so very much for this update and the service! We are deeply appreciative of both!

  • tmac47 says:
    03/04/20 at 05:29:17

    Sorry don’t like taxes!

  • greaterdiscounts says:
    03/04/20 at 06:21:37

    Yes, Thank you, Anything to make it easier on the sellers! Just hope it doesn’t scare off the buyers who seem to be far and in between!!:)

  • whisperinwillow says:
    03/04/20 at 06:35:04

    Thank You!

  • Couponeer says:
    03/04/20 at 07:19:49

    State sales tax calculation has always been confusing to me. A necessary evil. I will be registering for a free account with TaxCloud as it appears to maybe make things easier. Thank you!

    BonanzaShelly says in response:
    03/04/20 at 10:42:40

    TaxCloud has been great to work with!

  • MTK says:
    03/04/20 at 08:25:08

    Very simple and helpful, now…. if we would make any sale to see. I mean the main issue still remains, NO SALES in this site.

    BonanzaShelly says in response:
    03/04/20 at 10:45:26

    We’re glad you find it helpful. As for sales, we look forward to growing with our seller community.

  • BookbinEtc says:
    03/04/20 at 08:38:50

    I’m glad to see Bonanza handling this part of the sale for us.

    Thanks for the update.

  • lemon_s says:
    03/04/20 at 12:05:48

    I’m glad it is automatic, and taken care of in the sale for us. Easy to comply with :)

  • AwesomeCollectibles says:
    03/04/20 at 12:41:45

    So do we have to do anything (like set up an account with TaxCloud?), or is everything all being handled right now by Bonanza & TaxCloud? Thank you! Rick

    BonanzaShelly says in response:
    03/04/20 at 13:01:23

    Hi AwesomeCollectibles! You do not need to open a TaxCloud account to have taxes collected and paid according to the new Marketplace Facilitator Provisions. You can check with your Department of Revenue to see if there are any other taxes in your state. Thanks!

  • Thermostat_Police says:
    03/04/20 at 12:59:39

    Thanks for the update.It was explained very nicely.
    I wish you a successful 2020-the year for great visions!

    BonanzaShelly says in response:
    03/05/20 at 10:37:35

    Thanks! We wish you a successful year too! Sellers like you have been great, responding with their visions for Bonanza and their business. We hope that by working with all of you we can accomplish much!

  • Fathertime says:
    03/04/20 at 14:24:54

    A thumbs up Bonanza, Thank You for your efforts

  • red_raven says:
    03/04/20 at 19:09:53

    So…I am based in NY, and have always collected sales tax for sales within NY state. Are you saying you will automatically remit those taxes for me? I understand about the other states, but I want to be clear on what the policy means for my home state liability.

    BonanzaShelly says in response:
    03/05/20 at 13:10:54

    Hi Red_Raven,
    The marketplace tax law we are complying with only applies to taxes in your buyer’s state. Check with your state’s DOR to find out how it affects their taxes.

  • AlfredB100 says:
    03/05/20 at 08:16:04

    Sounds Great BONANZA !!!!
    This saves me a lot of headaches when I am having to file annually a lot of paperwork with the SC Revenue Department. I have to show by each individual county in SC, District, Region, and Etc. any item sold/calculate tax rate % in that area. Several counties are different with there Tax Rate % in SC so I have to keep up to date during the year. I have been attending 2 to 3 tax classes at the SC Revenue Department every year just to keep up with all the new tax laws, reporting changes, accounting periods, and different forms to complete. It is best to attend in person so you can talk to someone face to face regarding difficult tax questions for SC. AGAIN THANKS BONANZA

    BonanzaShelly says in response:
    03/05/20 at 13:08:27

    Checking in with the Department of Revenue is always a good plan! Thanks for being a part of our selling community.


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