Marketplace Facilitator
Category: platform
A platform (e.g. Amazon) required to collect and remit sales tax on behalf of third-party sellers.
A marketplace facilitator is a platform (e.g., Amazon, eBay, Walmart) that is required by state law to collect and remit sales tax on behalf of third-party sellers. Since the 2018 Wayfair decision, nearly all US states with sales tax have enacted marketplace facilitator laws. This shifts the sales tax collection obligation from individual sellers to the platform for marketplace transactions.
Examples
- • Amazon collects and remits sales tax on behalf of third-party sellers in all 45 US states that have sales tax, as well as in many EU countries for VAT.
- • A seller using both Amazon and their own Shopify store must handle sales tax collection on Shopify orders themselves, since Shopify is not a marketplace facilitator.
- • In the EU, Amazon acts as the deemed supplier for VAT on B2C goods valued at or below €150 imported from outside the EU.