Etsy paying sales tax

[TheFabricTrail]

According to Etsy they sent in my customer's sales tax collected, according to the State of Michigan we owe $131.00 in Sales tax and Etsy paid $ 0 according to the State. I need proof of the money you collected and sent in on our Behalf ETSY!!

anyone else have any problems???

[NanaLetha]

"If 100% of Michigan sales are coming from marketplace facilitators and there is no physical nexus in Michigan, then no return is required."

[bradgoodell]

@TheFabricTrail  You filed your tax return incorrectly.  You will need to re-file.

Michigan has a marketplace facilitator law.  That makes the marketplace the responsible party, not you.  Etsy doesn't collect sales tax you owe, Etsy collects and remits sales tax Etsy owes.   Your name is never mentioned.  

When filing your sales tax report with your state, your Etsy sales should be reported as tax-exempt.  Each state has a different way to report this.  If Etsy is the only place you sell, your taxable income will be ZERO.  But you will still need to file if you want to keep your tax license.  

Hope this helps.