Marketplace Facilitators

Does Amazon cover all states for sales tax, or are there gaps in facilitator coverage?

Amazon collects and remits sales tax in all 45 states with a sales tax, plus Washington DC. There are no current state-level gaps in Amazon's marketplace facilitator coverage. However, Amazon does not collect for sales the seller makes outside of Amazon (direct website, other platforms), and some transaction types like Amazon Business purchases may have different handling.

Does eBay collect and remit sales tax for sellers?

Yes, eBay collects and remits sales tax on behalf of sellers in all US states with a sales tax. eBay began collecting as states enacted marketplace facilitator laws from 2019 onward.

Does Faire (wholesale marketplace) handle sales tax for B2B sellers?

Faire operates as a marketplace facilitator and collects sales tax on taxable transactions. However, most Faire sales are wholesale transactions between brands and retailers, and wholesale purchases for resale are typically exempt. Faire collects resale certificates from buyers and applies exemptions accordingly. Sellers on Faire should understand that most of their transactions are likely exempt, not that Faire 'handles' tax as a compliance replacement.

Does selling on Etsy mean I don't have to worry about sales tax?

Etsy collects and remits tax on Etsy transactions, but those sales still count toward nexus thresholds, and any sales outside Etsy are entirely your responsibility.

Does TikTok Shop collect sales tax for sellers?

Yes — TikTok Shop is a marketplace facilitator and collects and remits sales tax on behalf of sellers in all US states with a sales tax, as of 2024.

Does Walmart Marketplace collect and remit sales tax for sellers?

Yes — Walmart Marketplace collects and remits sales tax on behalf of third-party sellers in all US states with a sales tax. But it doesn't cover your own-channel sales or registration obligations from physical nexus.

How do I aggregate sales across Amazon, Shopify, Etsy, and Walmart to determine nexus?

Most states measure economic nexus against total in-state sales from all channels combined. Amazon, Shopify, Etsy, and Walmart all count toward the same threshold. Here's how to aggregate correctly.

How do I reconcile multi-channel sales on a single state sales tax return?

A state sales tax return for a multi-channel seller combines all channels into a single gross sales figure, then deducts marketplace-facilitated sales (which the marketplace already remitted) and exempt sales. The result is net taxable sales, what you collected and owe. The deduction treatment for marketplace sales varies by state.

How do I report marketplace transactions on my state sales tax return?

Marketplace sales don't get excluded from your return, they get reported and then deducted. Leaving Amazon off your return creates a 1099-K mismatch that triggers notices. Step-by-step guide.

If Amazon already collects sales tax for me, do I still need to register in those states?

Amazon collecting tax on your Amazon sales doesn't eliminate your registration obligation if you have FBA inventory or sell on other channels. Here's the breakdown by scenario.

What is a marketplace facilitator law, and does it apply to me?

Marketplace facilitator laws require platforms like Amazon, Etsy, and Walmart to collect and remit sales tax on behalf of sellers. Here's what those laws cover, and what they don't.

What is the risk of assuming my marketplace is handling all my sales tax?

Marketplace tax collection only covers that marketplace's transactions. It doesn't cover your own website, doesn't eliminate physical nexus obligations, and doesn't mean you're registered. The gap between what Amazon handles and what you owe is where audit exposure lives.

Which marketplaces are covered by facilitator laws in all 45 states?

Amazon, Etsy, Walmart Marketplace, eBay, and TikTok Shop are all marketplace facilitators required to collect and remit sales tax in all 45 states with a sales tax. Coverage is determined by whether the platform meets each state's definition of a marketplace facilitator, all major platforms do. Smaller or niche platforms may not qualify.

Why doesn't marketplace facilitation completely eliminate my sales tax compliance obligations?

Marketplace facilitation covers transactions completed through the marketplace. It doesn't cover physical nexus, other sales channels, or your obligation to register. Here's why compliance obligations persist.