Marketplace Facilitator Tax
What is Marketplace Facilitator Tax?
Marketplace facilitator tax laws require platforms like Amazon or eBay to collect and remit sales tax on behalf of their third party sellers. This shifts the burden of tax compliance from individual small sellers to the large platforms they use.
Why It Matters
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It simplifies tax collection for state governments by dealing with a few large entities rather than thousands of small ones.
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For small sellers, it reduces the complexity of registering and filing taxes in multiple jurisdictions.
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It ensures that sales tax is collected on a much higher percentage of online transactions.
