Marketplace facilitator laws: when the platform collects for you

Marketplace facilitator laws moved sales tax collection from millions of small sellers to a handful of large platforms. They simplified a lot, but not everything. This guide explains what the laws do, what they leave with you, and how states treat marketplace sales on your own returns.

By Muhammad Bilal, Chartered Accountant. Reviewed by Mirza Fahad Baig, Chartered Accountant. Checked against official sources on . 2 minute read.

Short answer

Marketplace facilitator laws make online marketplaces, such as Amazon, eBay, Etsy and Walmart, collect and remit sales tax on sales they facilitate for third-party sellers. Every state with a sales tax has one; Missouri's took effect last, in January 2023. The marketplace handles tax on those orders, but sellers remain responsible for their own website and other channels, and may still need permits in some states.

At a glance

What the laws do
Make marketplaces collect and remit sales tax on sales they facilitate
Where
Every state with a sales tax
Last state
Missouri, from January 2023
Covered
Orders placed through the marketplace
Not covered
Your own website, social or in-person sales
Permits
Some states still require marketplace-only sellers to register
Marketplace facilitator laws: when the platform collects for youWhat the laws do: Make marketplaces collect and remit sales tax on sales they facilitate; Where: Every state with a sales tax; Last state: Missouri, from January 2023; Covered: Orders placed through the marketplace; Not covered: Your own website, social or in-person sales; Permits: Some states still require marketplace-only sellers to register.KEY FACTS AT A GLANCEMarketplace facilitator laws: when the platformcollects for youWhat the laws doMake marketplaces collectand remit sales tax onsales they facilitateWhereEvery state with a salestaxLast stateMissouri, from January2023CoveredOrders placed through themarketplaceNot coveredYour own website, socialor in-person salesPermitsSome states still requiremarketplace-only sellersto registerChecked against official sourcesTax BakersMarketplace facilitator laws: when the platform collects for youWhat the laws do: Make marketplaces collect and remit sales tax on sales they facilitate; Where: Every state with a sales tax; Last state: Missouri, from January 2023; Covered: Orders placed through the marketplace; Not covered: Your own website, social or in-person sales; Permits: Some states still require marketplace-only sellers to register.KEY FACTS AT A GLANCEMarketplace facilitator laws: whenthe platform collects for youWhat the laws doMake marketplaces collect and remit salestax on sales they facilitateWhereEvery state with a sales taxLast stateMissouri, from January 2023CoveredOrders placed through the marketplaceNot coveredYour own website, social or in-person salesPermitsSome states still require marketplace-onlysellers to registerChecked against official sourcesTax Bakers
Key facts at a glance, as set out in this guide.

What is a marketplace facilitator?

A business that operates a platform where third parties sell, and that processes the payment or otherwise facilitates the sale. Amazon, eBay, Etsy and Walmart Marketplace are the familiar examples. Under marketplace facilitator laws, the facilitator is treated as the seller for sales tax on those orders: it calculates, collects and remits the tax to the state.

Which states have these laws?

Every state that has a statewide sales tax. The laws spread quickly after the Supreme Court's 2018 decision in South Dakota v. Wayfair, and Missouri's law, effective January 2023, was the last. Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax, although some Alaska localities have adopted their own marketplace rules. See states with no sales tax.

Platform guides: Walmart Marketplace and TikTok Shop.

Alaska's local commission has its own marketplace rules. See Alaska remote seller sales tax.

What does the marketplace handle, and what stays with you?

Handled by the marketplaceStill your responsibility
Calculating tax on each marketplace orderSales on your own website, such as a Shopify store
Collecting it from the buyerIn-person sales at fairs and markets
Remitting it to the stateSales through channels that do not collect
Refunding tax on returnsRegistering where a state requires it, even for marketplace-only sellers

Do marketplace-only sellers need a permit?

It depends on the state. California does not require a seller's permit if all your retail sales are facilitated by a registered marketplace. Texas requires a permit from sellers based in Texas even if they only sell through marketplaces, but not from remote sellers selling only through a certified marketplace below its $500,000 safe harbor. See sales tax for Amazon FBA sellers.

How do marketplace sales appear on your returns?

Where you hold a permit, some states ask you to report marketplace sales in total sales and then exclude them from taxable sales, so they are not taxed twice. Texas, for example, requires marketplace sales in Total Texas Sales but not in Taxable Sales. See how to file a sales tax return.

Do marketplace sales count towards thresholds?

In many states they count towards the economic nexus threshold for your own direct sales, including California and Texas. A seller with large marketplace sales and a small website can therefore have to collect on the website sales. See economic nexus explained.

What should you keep?

  • Marketplace tax reports showing tax collected on your behalf, by state.
  • Confirmation from the marketplace that it is registered and collects in each state, where a state suggests getting it.
  • Sales by channel and by state.

Selling on marketplaces and your own site?

We work out which of your sales are covered by marketplace collection, where you still need permits, and file the returns that remain yours.

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Questions people ask

What is a marketplace facilitator law?

A state law requiring online marketplaces to collect and remit sales tax on sales they facilitate for third-party sellers.

Does every state have a marketplace facilitator law?

Every state with a statewide sales tax does. Missouri's, effective January 2023, was the last.

Do I still need a sales tax permit if I only sell on Amazon?

It depends on the state. California does not require one; Texas requires one from Texas-based sellers.

Does the marketplace collect tax on my own website sales?

No. Only on orders placed through the marketplace. Your own website sales are your responsibility.

Sources

Every fee, date and rule on this page was taken from these official and primary sources.

  1. Streamlined Sales Tax Governing Board: Marketplace facilitator state guidance
  2. California CDTFA: Tax Guide for the Marketplace Facilitator Act
  3. Texas Comptroller: Remote Sellers and Marketplace frequently asked questions
  4. Supreme Court of the United States: South Dakota v. Wayfair, Inc., 585 U.S. 162 (2018)

Rules and fees change. If you are reading this long after September 30, 2026, confirm the figures with the source before you rely on them.

Online sellersSales tax for Amazon FBA sellers: where your inventory creates nexusSales tax basicsEconomic nexus explained: when out-of-state sales create a tax dutySales tax basicsHow US sales tax works: a guide for small businesses

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This guide is general information. It is not tax or legal advice for your situation.