Unsure where you owe sales or use tax
Run Your Nexus Risk CheckMarketplace facilitator laws changed how sales tax is collected, but they did not eliminate your responsibility. Platforms like Amazon and Etsy may collect tax for certain transactions, but not all. You still need to track nexus, understand coverage gaps, and manage compliance across your direct and marketplace sales.
Marketplace facilitator laws require platforms to:
This applies to platforms like:
But only for marketplace sales
Marketplace platforms do not:
This is where most sellers get it wrong
You must track both separately
Marketplace sellers operate in two systems:
Check your exposure: Sales Tax Exposure Calculator
Without clear separation:
Marketplace laws are not identical across states
Differences include:
You cannot assume uniform rules
See thresholds: Economic nexus by state
Even with facilitator laws:
Marketplace collection does not remove nexus
Understand nexus: Marketplace sales tax nexus
You may need to file even if:
Why:
This is often missed
Most sellers operate across:
This creates:
See multi-state: Marketplace multi-state tax
Avoid mistakes: Marketplace sales tax mistakes
An Amazon seller assumes all tax is handled. Also sells through Shopify.
Result:
Correct approach:
You are at risk when:
At this stage, tracking is essential
Separate marketplace and direct sales
Understand state coverage
Automate when needed
Marketplace facilitator laws simplify tax collection but do not eliminate your responsibility as a seller. Most compliance issues come from assuming platforms handle everything, which leads to missed obligations and hidden liability. The right approach is to separate marketplace and direct sales, track nexus across both, and manage compliance based on actual exposure.