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Sales Tax and Marketplaces: Who Collects

Selling on a marketplace changes who handles the tax. Here is what that means for you.

Sales Tax and Marketplaces: Who Collects
Photo: Matt Moloney via Openverse (CC0)

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.

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.

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.

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.

Key takeaways
  • 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
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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.

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