Unsure where you owe sales or use tax
Run Your Nexus Risk CheckMarketplace sellers often assume sales tax is handled by platforms, but it is not. Amazon and Etsy may collect tax for certain transactions, but your obligations do not disappear. They become more complex across channels, and you must track where you actually owe tax.
Platforms like Amazon may collect tax
But only for:
You are still responsible for:
This split is where most confusion happens
Most sellers assume marketplaces handle all three. They don’t.automation.
Check your exposure: Sales Tax Exposure Calculator
Marketplace facilitator laws require platforms to:
But:
Understand rules: Marketplace facilitator tax rules
You may still owe tax if:
This is the hidden risk
Most sellers operate across:
Each channel has different tax behavior. You must track all of them.
See multi-state: Marketplace multi-state tax
You need software when:
Before that, focus on clarity
Best for: Multi-state, multi-channel sellers
Best for: Simpler marketplace setups
Best for: Identifying obligations before automating
Avoid mistakes: Marketplace tax mistakes
Separate sales channels
Understand marketplace coverage
Track exposure
Automate only when needed
An Amazon seller expands
Result:
Correct approach:
You should automate when:
Before that, clarity is more important
Marketplace sales tax is complex because responsibility is shared between platforms and sellers. Most businesses assume marketplaces handle everything, which leads to missed obligations and hidden liability. The right approach is to identify nexus, separate marketplace and direct sales, and track exposure across all channels so compliance remains accurate as your business scales.