Intermediate Quick Answer
Does Faire (wholesale marketplace) handle sales tax for B2B sellers?
⚡ TL;DR
Faire operates as a marketplace facilitator but most Faire sales are exempt — buyers are retailers with resale certificates, and Faire collects those certificates and applies exemptions at checkout. The real compliance question for Faire sellers is nexus, not collection: high wholesale volume into a state can still trigger economic nexus registration requirements.
Faire handles tax collection on taxable transactions, but most Faire wholesale sales are exempt because buyers are retailers with resale certificates. The compliance question for Faire sellers is nexus, not collection.
Key takeaways
- Faire is a marketplace facilitator: Faire collects and remits sales tax on taxable wholesale transactions in states where it qualifies as a facilitator
- Most Faire transactions are exempt: Faire’s buyer base is predominantly retailers purchasing for resale; Faire collects resale certificates from buyers and applies exemptions to qualifying orders; most transactions are processed exempt
- Non-exempt Faire sales: sales to buyers who aren’t resellers (gift shops buying for their own use, purchases for internal business consumption) would be taxable; Faire applies the appropriate treatment
- Economic nexus still applies: even if all your Faire sales are exempt, high sales volume into a state may create economic nexus registration requirements; in many states, exempt wholesale sales still count toward the threshold
- Seller’s certificate obligations: as the underlying seller, you should confirm that Faire has valid resale certificates on file for your buyers; Faire manages this through its onboarding process for buyers, but it’s worth confirming for audit protection
- Faire sales on state returns: Faire-facilitated sales may need to appear on your state returns as gross sales with an exempt deduction; check each state’s reporting requirements for marketplace-facilitated sales
- Not a substitute for compliance: Faire’s tax handling covers collection on the marketplace; it doesn’t register you in states, manage your nexus monitoring, or handle your own direct sales
Frequently asked questions
Does Faire collect sales tax on marketplace sales?
Faire operates as a marketplace facilitator and has the infrastructure to collect sales tax on taxable transactions. However, most Faire transactions are wholesale purchases by retailers who hold resale certificates, making those sales exempt from sales tax. Faire collects resale certificate information from its retailer buyers and applies exemptions to qualifying orders. The practical result for most Faire sellers is that most or all of their Faire sales are exempt from sales tax.
Do I still need to register for sales tax if I sell exclusively through Faire?
Potentially yes. Even if all your Faire sales are exempt from sales tax (because buyers are retailers with resale certificates), you may still have economic nexus in states where you have significant sales volume, and registration may be required. Additionally, if any Faire buyers are purchasing for final consumption rather than resale, those sales would be taxable. Monitor your Faire sales by state and register where nexus thresholds are crossed.
Looking for more answers on this topic?
Browse Marketplace Facilitators & Multi-Channel