What is a Marketplace Facilitator?
A marketplace facilitator is a business or platform that helps third-party sellers reach customers (e.g., Amazon, eBay, Etsy).
These platforms often handle transactions, logistics, and sometimes… taxes
Nexus and Marketplace Sales
Even if you're selling through a third-party platform, the revenue generated counts toward economic nexus thresholds.
👉Don't ignore these figures when assessing your tax obligations.
Who collects the sales tax?
✅If the marketplace collects and remits, you're likely covered.
If not, it's your responsibility to:
- Register with the state
- Collect tax from buyers
- File appropriate returns
Who is a Wholesaler?
- Buy in bulk from manufacturers or distributors, sell in smaller quantities to businesses/retailers
- Operate warehouses, handle logistics & focus on volume
- Require resale certificates to avoid sales tax on B2B transactions
Who is a Retailer?
- Sell directly to consumers
- Must collect sales tax unless a valid resale certificate is presented
- Taxable at the point of final consumption
What is a Resale Certificate?
A resale certificate lets a business buy goods without paying sales tax, if they plan to resell them.
- Issued by state tax authority
- Prevents double taxation (sales tax is collected only at the point of final consumer)
- Must be retained as proof to comply with tax regulations & avoid audit penalties
Why this matters
- Misunderstanding roles (seller vs. facilitator)
- Not tracking nexus thresholds
- Not collecting/keeping resale certificates
…can lead to audit risk and penalties.
Sales tax rules are only getting more complex.
- Nexus evaluations
- Marketplace compliance
- Reseller documentation
If you're a wholesaler, retailer, or selling through a marketplace facilitator, reach out to FinStackk to simplify your tax operations!