- Marketplace facilitators are businesses that contract with third-party businesses to sell goods and services on their platform
- States have added marketplace facilitator laws to ensure sales tax is collected for all sales made on platforms
- Marketplace facilitators are responsible for collecting and remitting sales taxes on behalf of sellers in compliant states
- Physical nexus can be triggered for online retailers if their inventory is stored in multiple tax jurisdictions by a facilitator
- Some states are easing off on physical nexus requirements for retailers using marketplace facilitators
Source: taxconnex.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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