Unsure where you owe sales or use tax
Run Your Nexus Risk CheckAmazon and Shopify handle sales tax very differently, and assuming they work the same way creates major compliance issues. Amazon may collect tax under marketplace facilitator laws, while Shopify depends entirely on your setup. If you sell on both, your tax obligations are split and must be managed separately.
This single difference defines everything
Amazon operates under marketplace facilitator laws
This means:
But only for:
Amazon does not:
This creates hidden gaps
Shopify is a platform, not a facilitator
It:
Shopify does NOT:
Learn setup: Ecommerce sales tax setup
Most sellers use:
This creates split responsibility:
This is where mistakes happen
A seller uses Amazon + Shopify. Assumes Amazon handles tax
Reality:
Result:
Even if Amazon collects tax. You still have nexus
Nexus determines:
Understand nexus: Marketplace sales tax nexus
Selling on both platforms means:
Check exposure: Sales Tax Exposure Calculator
You need to take action when:
At this stage, tracking is essential
Avoid mistakes: Marketplace sales tax mistakes
Separate marketplace vs direct sales
Track revenue by channel
Apply tax correctly on Shopify
You need software when:
Compare options: Marketplace sales tax automation
Amazon vs Shopify sales tax is not a platform comparison, it is a responsibility split. Amazon may collect tax for marketplace sales, but Shopify requires you to manage everything yourself. Most compliance issues come from assuming one platform covers the other. The right approach is to track nexus across both, separate revenue streams, and apply tax correctly so compliance stays accurate as you scale.