Marketplace Facilitator Laws: What Every Business Should Know About Sales Tax Responsibility

In today’s evolving digital economy, more and more businesses—whether they sell handmade crafts or high-volume tech products—are leveraging platforms like Amazon, Etsy, Walmart Marketplace, and eBay to reach customers. But with that reach comes a big question:

Who is responsible for collecting and remitting sales tax—your business or the platform?

The answer lies in Marketplace Facilitator Laws, a regulation that affects a growing number of sellers. If you’re not sure how these laws impact your sales tax compliance, this article is for you.

What Are Marketplace Facilitator Laws?

Marketplace Facilitator Laws require online platforms (called facilitators) to collect and remit sales tax on behalf of third-party sellers who use their services to sell products.

In other words, if you’re selling through a marketplace that qualifies as a facilitator, you may no longer need to collect and remit sales tax yourself for those sales—because the platform does it for you.

However, that doesn’t mean you’re off the hook entirely.

Why These Laws Were Introduced

Before these laws, it was difficult for states to enforce tax compliance on small sellers with no physical presence. Now, by shifting the responsibility to large marketplaces, states can ensure more tax gets collected, and sellers get simplified compliance—at least in theory.

Do These Laws Apply to You?

Marketplace Facilitator Laws apply if:

• You sell goods through a third-party platform (e.g., Amazon, eBay, Walmart, Etsy).

• You have customers in states where such laws are in effect (almost every U.S. state now enforces them).

What You’re Still Responsible For

Even if a marketplace handles tax collection, you still have responsibilities, including:

✅ Tracking Which Platform Collects Tax

Keep clear records showing which sales were taxed and remitted by the platform.

✅ Filing Returns When Required

In some states, even if the marketplace collects the tax, you still need to file a sales tax return—often showing $0 in tax collected.

✅ Monitoring Direct Sales

If you sell both through marketplaces and on your own website or via invoices, you are still responsible for handling the tax on those non-marketplace sales.

✅ Registering When Required

Some states still require sales tax registration, even if you only sell through marketplaces.

Why This Matters to Your Business

Misunderstanding these laws could lead to:

• Double taxation (collecting tax when you shouldn't)

• Non-compliance penalties

• Confusing tax filings

• Audit risks

Even businesses that think they're covered by the marketplace often discover hidden obligations that were overlooked.

How Manage My Sales Tax Can Help

Marketplace rules vary by state, and each seller’s situation is unique. That’s where Manage My Sales Tax becomes your trusted partner.

Here’s how we support your compliance:

• We evaluate your sales channels and determine your specific tax responsibilities.

• We handle state registrations and ensure you meet ongoing requirements.

• We reconcile platform tax reports with your sales records.

• We track filing deadlines and submit returns when required—even if they're zero.

With our expert team managing the details, you’ll reduce risk and stay focused on selling, not second-guessing tax rules.

👉 Let us help you simplify your sales tax compliance. Visit our website to learn more or book a consultation.