Illinois Administrative Code › Title 86 - REVENUE › Part 131 - LEVELING THE PLAYING FIELD FOR ILLINOIS RETAIL ACT › Section 131.125 - Remote Retailers - Obligations - Procedures - Hold Harmless Provisions

Current through Register Vol. 48, No. 28, July 12, 2024
a) Remote retailers
			 meeting either of the thresholds in Section
			 131.115(a)
			 are required to register with the Department to file returns and remit tax for
			 all sales made to Illinois purchasers. However, a remote retailer that has
			 entered into a Tax Remittance Agreement with a CSP is not required to register
			 with the Department. The CSP shall instead register, as agent, for the remote
			 retailer and file returns and make payment of tax as provided in Section
			 131.160.
			 A remote retailer that no longer has a Tax Remittance Agreement with a CSP as
			 provided in Section
			 131.160(j)
			 is required to register and file returns to remit tax as otherwise provided in
			 this Part.
b) A remote retailer
			 may, but is not required to, use a CSP to file returns and remit taxes, as
			 provided in Section 131.160.
c) A
			 remote retailer may file its own returns, and may, but is not required to,
			 utilize a CAS in filing its own returns and making payment of taxes. A remote
			 retailer using a CAS shall maintain in its books and records the name of the
			 owner or provider of the CAS it is using. A remote retailer shall also maintain
			 this information in its books and records for any subsequent uses of a
			 different CAS. This information shall be made available to the Department upon
			 demand.
d) If a remote retailer
			 uses a CSP, the CSP is considered the agent of the remote retailer as provided
			 in Section 131.160. All notices, assessments and other communications shall be
			 sent by the Department to the CSP, not the remote retailer. (See Section
			 131.160
			 for additional information.)
e)
			 Remote retailers that make both marketplace sales and sales outside of a
			 marketplace. Remote retailers often make sales both on a marketplace and
			 outside of a marketplace (e.g., over their own website). If they make sales
			 over a marketplace that meets the thresholds in Section
			 131.135
			 and have obtained certification from the marketplace facilitator that the
			 marketplace facilitator is legally responsible for payment of tax on
			 marketplace sales as provided in Section
			 131.145,
			 then all sales made over the marketplace are considered to be sales made by the
			 marketplace facilitator, not sales by the remote retailer. The marketplace
			 facilitator must include these sales on its return. A remote retailer shall not
			 include sales made through a marketplace on the separate returns it files with
			 the Department to report its own (non-marketplace) sales, and shall not include
			 any of the sales made through a marketplace when computing any retailers'
			 discount on their separately filed returns.
f)
A remote retailer is subject to
			 audit on all its sales, other than those which are made on a marketplace and
			 for which a marketplace facilitator remitted the applicable State and local
			 retailers' occupation taxes, unless the marketplace facilitator seeks relief as
			 a result of incorrect information provided to the marketplace facilitator by
			 the remote retailer as provided in
Section 131.145. [35 ILCS
			 120/2(c) ] (See Section
			 131.160(c)
			 and (d)  for audit procedures for remote
			 retailers using a CSP.)
g) A remote
			 retailer shall maintain books and records for its sales, including all sales
			 made over a marketplace, in accordance with the requirements of Section 7 of
			 ROTA.
h) A remote retailer that
			 files its own returns and makes payment of tax shall be entitled to the
			 retailers' discount for all sales for which it timely files returns and makes
			 payment of tax as required by Section 3 of ROTA. However, a remote retailer is
			 not entitled to the retailers' discount for sales reported on returns filed by
			 a CSP with whom it has a Tax Remittance Agreement. Similarly, a remote retailer
			 is not entitled to the retailers' discount for sales made over a marketplace as
			 provided in subsection (e).
i)
Remote retailers using a certified service provider or a certified
			 automated system provider are relieved from liability to the State for having
			 remitted the incorrect amount of use or occupation tax resulting from a
			 certified service provider or certified automated system relying, at the time
			 of the sale, on erroneous data provided by the Department in database files on
			 tax rates, boundaries, or taxing jurisdictions, or erroneous data provided by
			 the Department in database files concerning the taxability of products and
			 services.
[35
			 ILCS 185/5-30 ]
j)
Remote retailers using a certified
			 automated system shall be liable for any tax resulting from errors caused by
			 use of an updated or upgraded certified automated system prior to
			 recertification of the updated or upgraded certified automated system by the
			 Department as provided in
Section
			 131.165.
			 [35 ILCS
			 185/5-25(c) ]
k) Unless otherwise provided to the contrary
			 in this Part, a remote retailer is subject to all the rights and duties, and is
			 subject to the same modes of procedure, as all other retailers under
			 ROTA.
l)
Nothing in this
			 Section affects the obligation of any consumer to remit use tax for any taxable
			 transaction for which a remote retailer does not collect and remit the
			 appropriate tax.
[35 ILCS
			 120/2(j) ]