Sales Tax and Marketplaces: Who Collects
Selling on a marketplace changes who handles the tax. Here is what that means for you.
When you sell through a large marketplace, it usually collects and remits the sales tax on those orders as the marketplace facilitator. That simplifies part of your obligation but does not erase it: sales from your own store remain yours to handle, and marketplace sales can still count toward a state's nexus threshold.
Marketplaces often collect for you
When you sell through a large marketplace, the marketplace itself frequently collects and remits sales tax on those sales. That simplifies part of your obligation, but it does not erase it entirely.
Keep reading: US Sales Tax Basics for Online Sellers, What Economic Nexus Means and Why It Matters, Origin vs Destination Based Sales Tax, Explained. See how SalesTaxly helps you us sales tax rates and lookup for online stores.
Your own store is different
Sales through your own website are yours to handle. It is easy to assume the marketplace covers everything, then overlook the tax on your direct sales, which remain your responsibility. Related: Product Taxability: Why Not Everything Is Taxed the Same
Nexus still counts everywhere
Marketplace sales can still contribute to whether you have crossed a state's threshold. Even when the marketplace remits the tax, those sales can affect your obligations for your direct channel. Related: What Economic Nexus Means and Why It Matters
Keep the channels straight
The practical approach is to know, for each state, which sales are handled by a marketplace and which you must handle yourself, so nothing falls through the gap between channels. Related: How do you handle sales tax on shipping charges when selling to customers in different states?
- Marketplaces often collect and remit tax on their sales
- Sales from your own store remain your responsibility
- Marketplace sales can still affect your nexus
- Track which channel handles tax in each state
Julien Jimenez
Julien Jimenez is an independent software builder based in Paris. He designs, ships, and operates focused SaaS products for small businesses and independent professionals. Read the full author page.
Frequently asked questions
If a marketplace collects tax for me, do I still have obligations?
Yes. The marketplace handles tax on its own sales, but sales through your own website remain your responsibility, and marketplace sales can still contribute to whether you have crossed a state's threshold.
How do I keep marketplace and direct sales straight for tax?
For each state, track which sales a marketplace collects and remits and which you must handle yourself. That way nothing falls through the gap between channels.
Charge the right US sales tax, every time
US sales tax rates and lookup for online stores. SalesTaxly is built to help you put this into practice.
Look up a rateMore from the SalesTaxly blog
US Sales Tax Basics for Online Sellers
What Economic Nexus Means and Why It Matters
Origin vs Destination Based Sales Tax, Explained
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