Marketplace facilitators like Amazon, Walmart, eBay, Etsy, TikTok Shop and Shopify's Shop app collect and remit sales tax for you on orders placed through their platform. This article covers how we treat those sales in your filings, how they count toward nexus, how to make sure they're labeled correctly, and what to do if they weren't.
Note: This resource currently covers US jurisdictions only. For questions about marketplace sales in other globally supported jurisdictions, see our Global Filing & Compliance collection or contact our team through the messaging widget in your dashboard.
How we treat marketplace sales in your filings
We never pay tax on marketplace sales, because the marketplace already collected and remitted it to the state. We still include them in your reporting and nexus tracking.
How they appear on the return depends on the state's form. On a California return, for example, marketplace sales are included in your gross sales and then subtracted on the marketplace deduction line. Either way, no tax is paid on them twice.
How marketplace sales count toward nexus
Whether marketplace sales count toward your own economic nexus threshold depends on the state.
â Count toward your threshold
| â Do not count toward your threshold i.e., only direct sales count |
California ¡ Connecticut ¡ DC ¡ Hawaii ¡ Idaho ¡ Iowa ¡ Kansas ¡ Kentucky ¡ Maryland ¡ Michigan ¡ Minnesota ¡ Missouri ¡ Nebraska ¡ Nevada ¡ New Jersey ¡ New York ¡ North Carolina ¡ Ohio ¡ Pennsylvania ¡ Puerto Rico ¡ Rhode Island ¡ South Carolina ¡ South Dakota ¡ Texas ¡ Vermont ¡ Washington ¡ West Virginia ¡ Wisconsin | Alabama ¡ Alaska ¡ Arizona ¡ Arkansas ¡ Colorado ¡ Florida ¡ Georgia ¡ Illinois ¡ Indiana ¡ Louisiana ¡ Maine ¡ Massachusetts ¡ Mississippi ¡ New Mexico ¡ North Dakota ¡ Oklahoma ¡ Tennessee ¡ Utah ¡ Virginia ¡ Wyoming |
⪠No state sales tax: Delaware ¡ Montana ¡ New Hampshire ¡ Oregon
đĄ If you're close to a threshold in a state where marketplace sales count, check your combined total on the Jurisdictions page, not just your direct sales. That combined number decides whether you've crossed nexus there.
đ´ We can only count marketplace sales we can see. If you sell on Amazon, Walmart or eBay, connect those seller accounts so we can track them. See Marketplace Sales for setup.
Shopify: Confirming a channel is classified correctly
If youâre connected to Numeral through Shopify, itâs important to make sure your sales channels are configured correctly. This determines how Numeral classifies orders from each channel for tax purposes.
During onboarding, each sales channel is configured as DTC (direct-to-consumer), Marketplace, or Wholesale. You can review these settings under Connections â Manage â Products, as well as in your filingâs transaction export, where each line includes a Marketplace flag alongside the Taxable flag.
If a channel or its orders donât appear to be classified correctly â for example, marketplace orders showing up as taxable DTC sales â message your team with the channel name and a sample order number so we can review the configuration.
For more detailed guidance, see our article on Configuring Shopify Sales Channels.
đŹ Questions? Reach out to our team anytime via the messaging widget in your Numeral dashboard.