Unsure where you owe sales or use tax
Run Your Nexus Risk CheckMarketplace sellers often assume tax obligations disappear when platforms collect tax, but that is not how nexus works. Nexus still determines where you owe tax, regardless of who collects it. If you sell across states or use fulfillment services like FBA, you may already have obligations in multiple jurisdictions without realizing it.
Sales tax nexus is your obligation to collect and file tax in a state, even if a marketplace collects tax on your behalf.
Nexus still determines:
Marketplace sellers operate in two systems:
You are fully responsible here. This split creates confusion.
Triggered by:
Typical thresholds:
Triggered by:
Many marketplace sellers trigger this unknowingly
Important distinction:
Even if the marketplace collects tax. You may still have nexus.
Understand rules: Marketplace facilitator tax rules
You trigger nexus when:
This can happen quickly
Estimate exposure: Sales Tax Exposure Calculator
Once nexus exists:
Even if tax is collected by the marketplace
Common reasons:
This leads to hidden liability
You need visibility into:
Manual tracking is unreliable
See automation: Marketplace sales tax automation
Avoid mistakes: Marketplace sales tax mistakes
An Amazon seller uses FBA. Inventory is stored across multiple states.
Result:
Correct approach:
You are at risk when:
At this point, tracking is essential
Once identified:
Understand marketplace coverage
Register where required
Track exposure
Manage compliance
Marketplace sales tax nexus is often misunderstood because sellers assume marketplace collection eliminates their obligations. In reality, nexus determines where you owe tax regardless of who collects it. The right approach is to track nexus across inventory, sales, and channels so compliance remains accurate as your business grows.