Marketplace Facilitator

Definition

A marketplace facilitator is typically a platform that lists goods or services for third-party sellers and, under state law, may be required to collect and remit sales tax on marketplace transactions. That relieves some seller collection burden, but it does not erase every other tax obligation the seller may still have.

Examples

• A state may require Amazon to collect tax on qualifying marketplace sales by third-party sellers.
• A seller's direct website sales are usually not covered by marketplace-facilitator collection rules.