A marketplace facilitator may qualify for liability relief for failing to pay the correct amount of TPT in relation to a marketplace seller’s sales in two situations:
- The failure to pay is due to incorrect information provided to the marketplace facilitator by the marketplace seller, and the facilitator and seller are not affiliated persons; or
- The failure to pay is due to an error other than the sourcing of the sale (i.e., the determination of the jurisdictions whose taxes will apply to the sale) and the marketplace facilitator and the marketplace seller are not affiliated persons.
The liability relief for Situation 2 may not exceed the following:
- For calendar year 2019, 5% of the total tax due on taxable Arizona sales facilitated by the marketplace facilitator on behalf of a marketplace seller.
- For calendar year 2020, 3% of the total tax due on taxable Arizona sales facilitated by the marketplace facilitator on behalf of a marketplace seller.
- For calendar year 2021 and each calendar year thereafter, 0%.
In each case, the marketplace facilitator bears the burden of proving its qualification for liability relief to the department.
A marketplace facilitator’s liability relief limitations are applied in relation to the total Arizona tax liability of all the marketplace sellers selling on the marketplace facilitator’s marketplace. A marketplace facilitator cannot seek liability relief on its sales or the sales of its affiliates.