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Q：
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What is a Marketplace Facilitator in the United States?
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A：
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A Marketplace Facilitator refers to a platform operator that provides a marketplace for third-party sellers, facilitates transactions, and, as required by state sales tax laws, assumes the responsibility of collecting and remitting sales tax on behalf of sellers.
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Which platforms are considered Marketplace Facilitators?
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A：
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Amazon is one of the largest Marketplace Facilitators in the United States. For qualifying transactions, remote sellers generally do not need to collect sales tax directly from customers. When a remote seller sells and ships goods to customers in states that have enacted Marketplace Facilitator laws through the Amazon platform, Amazon generally assumes responsibility for:
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Calculating the applicable sales tax;
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Collecting sales tax from customers;
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Remitting sales tax to the applicable tax authorities; and
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Processing sales tax refunds related to those transactions.
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Do remote sellers still need to apply for a Sales Tax Permit?
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It depends on the specific requirements of the state where the sales occur. Although Marketplace Facilitators may be responsible for collecting and remitting sales tax, states have different rules regarding whether remote sellers are still required to register for a sales tax account or obtain a Sales Tax Permit.
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What should remote sellers consider if they sell products through multiple Marketplace Facilitator platforms?
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If remote sellers use multiple Marketplace Facilitator platforms, such as Amazon and Shopify, they should separately understand each platform’s sales tax collection and reporting rules. Generally, Marketplace Facilitator platforms may not actively monitor whether a remote seller has exceeded a state’s Economic Nexus threshold based on sales revenue or transaction volume. Instead, these platforms typically calculate and collect sales tax directly based on the sales tax rules applicable to the customer’s location.
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Is Shopify a Marketplace Facilitator that remits sales tax on behalf of sellers?
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Shopify can assist sellers in calculating sales tax based on the applicable sales tax rules of the customer’s location; however, Shopify generally does not file sales tax returns or remit sales tax on behalf of sellers. Therefore, remote sellers selling products through Shopify are generally responsible for determining whether they have exceeded the Economic Nexus threshold in a particular state, applying for a Sales Tax Permit where required; and filing sales tax returns and remitting collected sales tax on a regular basis.
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