Understanding US Sales Tax Withholding (Marketplace Facilitator)

Updated October 25, 2024 11:24

Read this to learn how GetYourGuide handles sales tax collection and remittance on behalf of supply partners in certain states.

What is sales tax withholding?

Certain state laws require GetYourGuide to collect and remit sales tax on behalf of supply partners. For below listed states, GetYourGuide will take full responsibility for the filing and payment of sales tax on your in-state sales made on the GetYourGuide marketplace.

In-Scope States

To be added when sales tax registration(s) are complete.
All in-scope suppliers will be notified in advance of GetYourGuide going live in any new states.

Determining taxability

The location of the activity for sales tax purposes is the meeting point. The meeting point will be considered alongside other factors (nature of activity and provision of any equipment/food/drink) in determining taxability, and the meeting point zip code will determine tax rate.

Sales tax withholding process

If an in-scope state activity is taxable, GetYourGuide will withhold sales tax from your payment and remit it to the local state.
Sales tax withheld will be visible on your monthly statement, with a detailed breakdown at the activity/tax rate level will be found in the monthly booking list from the supplier portal.

Note: Sales tax references above do not include other equivalent taxes such as attraction and amusement taxes.

Pricing adjustments

Assuming you have entered the relevant information (per above) to determine taxability, and your activity has a meeting point located in an in-scope state, then the amount of tax withheld (if any) will be reflected in the ‘Pay out per participant’ when setting your price on the supplier portal.

The monthly booking list, available on the supplier portal in respect of activities provided in the previous month, confirms the specific tax rate applied.

For any queries regarding the tax rate applied or general questions about changes to your sales tax obligations, please contact us.

Frequently Asked Questions

How will I know if my activity is subject to sales tax withholding?
You will be notified if your activity is in an in-scope state and subject to sales tax withholding.
Where can I see the sales tax withheld from my payments?
Sales tax withheld will be visible on your monthly statement. A detailed breakdown can be found in your monthly booking list on the supplier portal.
How is the tax rate determined?
The tax rate is determined by the meeting point zip code of the activity.