Marketplace facilitators and sellers sales tax responsibilities.
A Marketplace Facilitator is a platform that partners with third-party sellers to facilitate the sale of physical goods, digital items, and services.
Amazon
A Marketplace Facilitator is defined as a marketplace that contracts with third party sellers to promote their sale of physical property, digital goods, and services through the marketplace. As a result, Amazon is deemed to be a marketplace facilitator for third-party sales facilitated through Amazon's global marketplaces.
Marketplace Facilitator legislation is a set of laws that shifts the sales tax collection and remittance obligations from a third party seller to the marketplace facilitator. As the marketplace facilitator, Amazon will now be responsible to calculate, collect, remit, and refund state sales tax on sales sold by third party sellers for transactions destined to states where Marketplace Facilitator and/or Marketplace collection legislation is enacted. In certain states, local taxes are not included within Marketplace Facilitator Legislation; Amazon is not responsible for those taxes.
Etsy
Based on applicable US State enacted marketplace facilitator tax laws, Etsy automatically calculates, collects, and remits US sales tax on behalf of sellers located anywhere in the world when:
An order ships to a recipient in the US; or
A digital order is purchased by a US buyer; and
The order meets certain criteria
Whether Etsy calculates sales tax on orders and the rate that is charged will depend on the specific taxing authority treatment and hence on how the item is listed.
eBay
According to relevant tax laws, eBay will manage the calculation, collection, and remittance of sales tax on behalf of sellers for items shipped to customers in the US.
eBay offers dedicated page that provides sellers with all the necessary information regarding their sales tax responsibilities as sellers, as well as eBay's responsibilities as a marketplace facilitator.
When applicable, eBay also provides a pre-filled marketplace facilitator certificate that confirms their responsibility for collecting and remitting sales tax on behalf of the seller
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