Marketplace Facilitator Law

All 45 states with a statewide sales tax and the District of Columbia require marketplace facilitators that exceed economic nexus thresholds, usually $100,000 in sales, to register, collect tax on facilitated sales, file returns and remit. Missouri's law, effective January 1, 2023, was the last to take effect. Third-party sellers are generally relieved of collecting on those sales but may still need to register, especially where they hold inventory, and must collect on their direct website sales.

These laws split tax responsibility by channel, which matters for any brand selling on Amazon, Walmart or eBay while also running its own web store. Marketplace orders are taxed by the platform, but direct sales shipped from the same 3PL warehouse are the seller's responsibility once nexus exists. For example, a brand whose inventory sits in an Amazon FBA warehouse in Arizona has physical nexus there and must collect Arizona tax on its own website sales.

• Fulfillment by AmazonFBAAmazon stores and ships your orders
• Multi-Channel FulfillmentMCFOne inventory pool for every sales channel

• Amazon Marketplace Launch2000 · Third-party sellers list on Amazon's product pages

• South Dakota v. Wayfair2018 · Supreme Court case allowing economic nexus for sales tax
• Quill Corp. v. North Dakota1992, overruled 2018 · 1992 case requiring physical presence for sales tax
• INFORM Consumers Act2022, effective 2023 · US law making marketplaces verify high-volume sellers

1. Missouri Department of Revenue: FAQs, Remote Seller and Marketplace Facilitator dor.mo.gov
2. CDTFA: Tax Guide for Marketplace Facilitator Act cdtfa.ca.gov