- Marketplace facilitators are businesses that help third-party sellers offer goods and services on their platforms.
- They handle tasks like listing products, taking payments, issuing receipts, and sometimes managing shipping.
- Examples include Amazon, eBay, Walmart Marketplace, and Etsy.
- States have marketplace facilitator laws to ensure sales tax collection from third-party sales.
- Nearly all states with sales tax have these laws, but specifics vary by state.
- Marketplace facilitators usually collect and remit sales tax for sellers, but sellers may still have responsibilities.
- Selling on multiple channels or directly on a website can create additional tax obligations.
- Sellers must consider economic nexus thresholds and may need to file returns even if sales tax is handled by facilitators.
- Warehousing inventory with facilitators like Amazon can also impact tax obligations.
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.
