Marketplace Facilitator Tax Policy
Last Updated: June 17, 2022
What is a Marketplace Facilitator?
A Marketplace Facilitator is generally defined as a marketplace that contracts with third party sellers to promote their sale of tangible property, digital goods, and services through the marketplace. As a result, Instacart may be a marketplace facilitator for third-party sales facilitated through Instacart's marketplaces, depending on the jurisdiction.
What is the Marketplace Facilitator legislation?
Marketplace Facilitator legislation is a set of laws that shifts the sales tax collection and remittance obligations from a third party seller to the marketplace facilitator. As a marketplace facilitator, Instacart is responsible for calculating, collecting, and remitting tax on all Retailer transactions made through the platform in states where marketplace facilitator legislation is enacted and no exemption or waiver is in effect. In certain states, local taxes are not included within Marketplace Facilitator Legislation; Instacart is not responsible for those taxes.
Where is Instacart remitting taxes?
Instacart is registered to collect and remit sales tax, local taxes and a limited number of other taxes and fees in the jurisdictions below. Our obligations may change as a result of enactment of additional legislation. Enter a state in the field below to see the effective dates where Instacart is collecting and remitting taxes on behalf of marketplace sellers.
What reporting will Instacart provide to retailers regarding MPF taxes?
Retailers will have access to the Retailer Tax Log via the Retailer Platform Portal (RPP). This report will provide a breakdown of all taxes Instacart charges customers and the column MPF Flag will indicate if MPF taxes were applicable.
Is Instacart required to provide certification that it will collect and remit tax on behalf of a retailer?
Instacart certifies that it is registered to collect sales tax and will remit sales and use tax on the sales of taxable marketplace items made through our platform in states listed above. Please use this statement as a certification. Instacart can provide additional documentation upon request.
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"Instacart and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors."