Tax
Marketplace facilitator
A marketplace facilitator is a platform that is legally responsible for collecting and remitting sales tax on sales made through it. US state marketplace facilitator laws shift this duty from individual sellers to platforms such as Amazon and Etsy.
In plain terms: The rule that makes Amazon, not you, collect sales tax on Amazon sales.
Why it matters
It removes a large part of the compliance burden for marketplace sellers, but only for marketplace sales. Your own website is not a marketplace, so the obligation there remains yours once you have nexus.
Common misunderstanding
Assuming platform collection covers all your sales. The direct-to-consumer channel is the gap.
Read the full guideE-commerce operations