Unsure where you owe sales or use tax or dealing with legacy compliance pain?
Check Your ExposureGrowing marketplace sellers often assume sales tax is fully handled by the platform. In reality, marketplace rules vary by state and by transaction type. Sales tax and use tax exposure can still exist even when a marketplace collects tax on some or all sales. The challenge is understanding where obligations remain, whether registration or filing is required, and how to move toward compliant outcomes without unnecessary filings.
Marketplace sellers operate inside platforms that may collect tax, issue reports, or summarize transactions. These features create a false sense of simplicity. Exposure often appears because marketplace collection does not apply universally.
Common drivers of exposure include
Understanding these nuances prevents incorrect assumptions and over-compliance.
Marketplace facilitator laws
Many states require marketplaces to collect and remit sales tax on behalf of sellers. However, these laws do not always eliminate the seller’s obligation to register, file, or report. Some states still require:
Sellers often make direct sales through websites, invoices, or other channels. These sales are not covered by marketplace collection rules and may create separate obligations.
Inventory stored by marketplaces or fulfillment partners can create physical nexus in states where sellers did not expect it.
Marketplace sales may or may not count toward economic nexus thresholds depending on state rules. This varies by jurisdiction.
If the marketplace collects tax, I have no obligations is often incorrect. Marketplace reports are always sufficient is false. Registration is never required for marketplace sellers is incorrect. Exposure only exists where tax was not collected is false. Clarity comes before compliance.
Exposure can include:
Not all exposure requires immediate action. Prioritization matters.
A practical approach looks like this:
Identify where marketplace and direct sales occur
Understand marketplace facilitator rules by state
Review whether registration or filing is required
Separate states that require action from those that do not
Decide next steps before filing or paying anything
This avoids unnecessary filings and incorrect assumptions.
TaxMap helps marketplace sellers:
TaxMap supports structured compliance decisions for growing and established businesses.
Marketplace dashboards are designed for transaction visibility, not compliance decision making. They do not interpret state specific rules, filing requirements, or use tax exposure. TaxMap exists to translate marketplace data into compliance clarity before action is taken.