Marketplace Facilitator Tax
A law requiring platforms like Amazon or Walmart to collect and remit sales tax on a seller's behalf, shifting that compliance burden off the seller.
In practice
It significantly simplified sales tax compliance for small sellers, who previously had to register and remit tax in every state where they had enough sales volume to trigger nexus - now the marketplace itself handles that calculation and remittance on qualifying sales.
A seller doesn't have to separately register for sales tax in a state where they have no physical presence, because Amazon automatically collects and remits it as the marketplace facilitator.
Why it matters
It shifted a significant compliance burden off individual sellers, but it also means a seller no longer has full visibility or control over exactly how tax is calculated and remitted.
Worth knowing
- Applies to qualifying marketplace sales, not necessarily to a seller's own direct website sales.
- Rules and thresholds vary by state or country, so coverage isn't automatically uniform everywhere.
- Sellers should still track which sales are covered, since direct-channel sales may need separate registration.
Start the conversation
Let's talk it through
Tell us where things stand with putting marketplace facilitator tax into practice and we'll respond with next steps, no forms, no waiting in a queue.
- A specialist replies directly, not a support queue
- Whichever channel is fastest for you, call, WhatsApp or email
- No long-term contract to start the conversation
