Sales tax glossary
What is a marketplace facilitator?
A marketplace facilitator is a platform, such as Amazon, Etsy or Walmart Marketplace, that processes sales for third-party sellers. Every state with a statewide sales tax has a marketplace facilitator law requiring these platforms to collect and remit sales tax on the sales they facilitate.
Example
A seller lists products on a large online marketplace. The marketplace calculates, collects and remits sales tax on those orders, so the seller doesn't collect tax on them separately.
Why it matters for sellers
Marketplace laws shift collection, not every obligation. Some states still count marketplace sales toward your own nexus threshold, and you may still need to register or file. Sales through your own website remain your responsibility.
Related terms
This definition is general information, not tax or legal advice. Rules vary by jurisdiction and change over time.
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