Explained

Who Collects Sales Tax on Marketplaces Now?

Since 2018’s Wayfair ruling, most states shifted sales-tax collection to the platform, not the individual seller. Here’s the breakdown you can share with buyers.

What “Marketplace Facilitator” Means

• Marketplaces such as eBay, Etsy, Amazon, Mercari, and Poshmark must collect and remit sales tax on eligible orders shipped into states with facilitator laws (44+ states as of 2024).
• Buyers see tax at checkout even if you operate from a tax-free state because the platform handles compliance for you.

Seller Responsibilities

• You still need a sales-tax permit in your home state (if required) to cover direct website sales or local pickups.
• Keep invoices noting that the platform collected tax. This proves you didn’t avoid remittance during audits.

Buyer FAQ Talking Points

• “I’m in Oregon. Why was I charged tax?” → The buyer is in a facilitator state, so the marketplace applied the rate automatically.
• “Can you refund the tax?” → No. Only the marketplace can adjust it, and they’re legally obligated to remit the tax to the state.
• “Does this affect shipping?” → Shipping charges may be taxable depending on the ship-to state; again, the marketplace handles it.

Action Items for Sellers

• Update your FAQ and canned replies to mention facilitator laws so you stop custom-refund requests.
• In bookkeeping software, note that marketplace tax was collected so you don’t double-pay when filing your own state returns.