Ky.gov

KRS 139.010 defines remote retailers as those with no physical presence in Kentucky.

KRS 139.010(22) defines "marketplace provider" in part as a person that "provides a marketplace for making retail sales of tangible personal property, digital property, or services, or otherwise facilitates retail sales of tangible personal property, digital property, or services, regardless of ownership or control of the tangible personal property, digital property, or services, that are the subject of the retail sale." Please consult the statutory provisions for more details.

A "marketplace retailer" is a seller that makes retail sales through any marketplace owned, operated or controlled by a marketplace provider.

HB 487, effective July 1, 2018, requires remote retailers with 200 or more sales into the state or more than $100,000 in gross receipts from sales into the state to register and collect Kentucky sales and use tax. The transaction and gross receipts thresholds are based on the previous or current calendar year sales. These thresholds are the same as confirmed in the Wayfair US Supreme Court decision. 

HB 354 requires marketplace providers with $100,000 in gross receipts or 200 or more separate transactions sourced to this state in the previous or current year to register for a Kentucky sales and use tax account and collect Kentucky tax on all sales through their marketplace into this state beginning July 1, 2019.  They must register and begin remittance by the first day of the calendar month that begins no later than 30 days after either threshold is reached. 

According to the provisions of KRS 139.450, the threshold applies when any sales combination exceeds either the sales or transaction thresholds. The marketplace provider must register and collect the applicable Kentucky sales and use tax on all sales made through its platform when its own sales or sales  in combination with sales it facilitates reach the required thresholds.

​In 2018, House Bill 487 amended KRS 139.340 to require remote retailers (no physical presence in Kentucky) that generate more than $100,000 in gross receipts or 200 or more transactions sourced to this state to register and remit use tax on taxable sales sourced to Kentucky.  In accordance with the provisions of KRS 139.450 and effective July 1, 2019, marketplace providers that surpass those same thresholds are required to register and remit Kentucky use tax on all sales sold into this state through their platforms.  This provider reporting requirement includes all Kentucky sales conducted on behalf of the remote retailers that sell goods via the provider's platform.   For remote marketplace retailers that sell exclusively through a Kentucky-registered marketplace provider, or providers, and are not otherwise required to collect and remit Kentucky sales and use tax, they are not required to register for a Kentucky sales and use tax account to report their marketplace sales.    

​Remote retailers and marketplace providers required to register for sales and use tax collections in Kentucky may go through the Streamlined Sales Tax Governing Board's central registration system to register in all 24 Streamlined member states in one process. There are also Certified Service Providers (CSPs) available to assist with the tax collection and filing process. The CSP will provide the services necessary to register, set-up and integrate the CSP's software with the seller's system, identify taxable products and services, etc. See central registration and CSP information here.

To register only for Kentucky tax collections, go to www.onestop.ky.gov.

According to the provisions of KRS 139.450, a marketplace provider must 1) register for a sales and use tax permit to report and pay the tax due on its own sales and 2) register for a separate sales and use tax permit to report and pay the tax due on the sales it facilitates for all of its marketplace retailers.

​Each state's remote seller laws are different.  In order to determine which laws apply to your business, go to the Streamlined Sales Tax website for collection requirements in all 24 Streamlined Sales Tax states.  If the state is not a member of Streamlined Sales Tax, we recommend you contact that state.

The marketplace retailer must include its marketplace sales sourced to Kentucky in total gross receipts on line one of its Sales and Use Tax Return for each reporting period.  The sales facilitated and reported to Kentucky by marketplace providers should then be deducted as an "other deduction," and the name(s) and Kentucky sales tax account number(s) of the marketplace provider(s) that collected the tax should be indicated in the space provided. 

If the marketplace retailer is a remote retailer (no physical presence in Kentucky) that does not reach the economic nexus threshold of more than $100,000 in gross sales or 200 or more sales transactions (counting all its sales from any marketplace platforms and its own direct sales), then the remote retailer is not required to register or collect the tax due on Kentucky sales.

​No, Kentucky has no local option sales taxes and all statewide sales are reported on a single return for each reporting period per account number.

​No, Kentucky and the Streamlined Governing Board states do not charge a registration fee. Please beware of fraudulent website offers to register retailers in all sales tax states for a single registration fee.

​Yes, subject to a $50 limitation per reporting period, a retailer may deduct and retain 1.75% of the first $1,000 of tax due and 1.5% of the tax due exceeding $1,000. The compensation is also limited to timely filed and paid returns.

​No, there is no expiration date for the registration. Sales and use tax account numbers remain active until canceled by the retailer. 

Sales and Excise Taxes