Do you need to collect and remit sales tax in Oregon?
Oregon is unique when it comes to sales tax, being one of only a few that don’t impose a general sales tax. However, that doesn’t mean there are no taxes at all. The state does impose selective sales taxes on certain items, such as a vehicle use tax on vehicles purchased outside of Oregon but titled and registered within the state. There is also Corporate Activity Tax (CAT), which is imposed on all Oregon businesses and measured on by commercial activity. You can find more information about Oregon business taxes here.
Do you have sales tax nexus in Oregon?
Oregon does not have nexus laws for businesses operating in the state or remotely.
Are marketplace facilitators required to collect and remit sales tax in Oregon?
The landmark 2018 Wayfair decision had significant implications for sales tax across the United States, but Oregon remained largely unaffected. The reason? Oregon does not impose a general sales tax, so its residents and businesses were not impacted by the ruling.
This also means that Oregonians purchasing goods or services online generally do not owe sales tax to other states. As a result, marketplace facilitators are not required to collect and remit sales tax in Oregon, providing a simpler sales tax landscape.
What platforms are marketplace facilitators?
What is a marketplace facilitator?
A marketplace facilitator, sometimes referred to as a Multivendor Marketplace Platform (MMP), is an online platform that allows customers to buy goods or services from various vendors in one convenient location. These platforms can benefit businesses by increasing product visibility and attracting a larger customer base. Additionally, marketplace facilitators often have the legal responsibility to collect and remit sales tax on behalf of sellers, which can help ease the sales tax burden for businesses.
Filing Oregon Sales Tax
When it comes to filing Oregon sales tax returns, there are no worries. Since the state does not impose a general sales tax, there is no need to file returns. Retailers should be aware of the Oregon Business Registry Resale Certificate, however, which may be relevant for certain transactions.
The Oregon Business Registry Resale Certificate is designed for Oregon buyers or businesses that purchase goods outside of the state to resell them in Oregon. By providing a completed form to an out-of-state seller at the time of purchase, the transaction may be exempt from that state’s sales, use, or transaction tax.
It is important to note that this is not a one-size-fits-all solution to being sales tax free. Out-of-state sellers do not have to accept this form, and some states may necessitate the use of their state-specific tax exemption form. If you are using this resource, make sure you verify the different state requirements depending upon where you intend to purchase.