An online marketplace facilitator is a business that does all the following:
contracts with online marketplace sellers,
operates an online marketplace platform (e.g. a website or mobile app) to facilitate the purchase and retail sale, provision or lease of goods, software or services (including accommodation) between online marketplace sellers and online purchasers, and
collects payments for these sales, provisions or leases, from the purchasers.
Note: If you contract with a third party to collect payment from the online marketplace seller’s customers, you are still considered to be collecting payment.
An online marketplace facilitator is not acquiring an online marketplace seller’s goods, software or services for resale and is not required to provide their PST number or other proof of registration to an online marketplace seller, for that purpose.
Example 1:
You operate an online marketplace through which you sell your own goods. In addition, online marketplace sellers can sell their goods at retail through your online marketplace. You facilitate these sales through your online marketplace and collect customer payments on behalf of the online marketplace sellers.
You are an online marketplace facilitator because you facilitate the sale of, and collect payment for, online marketplace sellers’ goods.
If you only sold your own goods and did not facilitate other online marketplace sellers’ sales, then you are not an online marketplace facilitator.
Example 2:
You own and operate a social media network and provide an online marketplace for persons using the network to buy and sell goods. You function solely as an advertising marketplace bringing buyers and sellers together. Once the buyer and seller have contacted each other over the network, they must negotiate the sale and make payment arrangements themselves.
While the platform you provide is an online marketplace, you are not an online marketplace facilitator because you do not collect payment from customers on behalf of the sellers.
Example 3:
You operate a specialized online marketplace that sells various brands of fashion wear to customers. You purchase fashion wear for resale from various suppliers and you offer it for sale through your online marketplace. Your marketplace does not indicate to customers that the sales are made on behalf of any identified third-party sellers.
You are not an online marketplace facilitator because you are an online retailermaking your own sales of fashion wear, not facilitating third-party sales.
