In recent years, U.S. tax regulations have shifted the responsibility for collecting and remitting sales tax from individual sellers to marketplace facilitators such as Amazon, Shopify, Etsy, and Walmart. These laws simplify compliance for small business owners but introduce complexity in reporting, record-keeping, and understanding state-by-state requirements. At PEAK Business Consultancy Services, we help e-commerce sellers and their CPA partners navigate this evolving landscape with accuracy and confidence.
Whether you’re a solo entrepreneur or a high-volume Amazon FBA seller, understanding how marketplace facilitator rules work is essential for avoiding penalties and ensuring correct sales tax filings. Visit PEAK BCS to explore how we can support your compliance needs through affordable and reliable outsourcing services.
What Is a Marketplace Facilitator?
A marketplace facilitator is a business or platform that contracts with third-party sellers to facilitate the sale of goods and services. Under marketplace facilitator laws, platforms like Amazon and Shopify are required to collect and remit sales tax on behalf of sellers in most U.S. states.
This means that if you sell through Amazon, the platform will typically handle sales tax collection for transactions in states where they are registered as a facilitator. However, sellers are still responsible for accurate reporting and income tax compliance on their total sales.
Why Compliance Still Matters for Sellers
Even though the platform collects the sales tax, sellers are still accountable for:
- Proper classification of products (some items are tax-exempt or taxed differently)
- Tracking revenue by state for income tax nexus
- Understanding which states have facilitator laws and which don’t
- Filing returns in states where other channels (like a website) are used
- Reconciling marketplace sales with reported income
This is where PEAK Business Consultancy Services offers tremendous value. We work behind the scenes with U.S.-based CPAs to organize, reconcile, and prepare tax filings for Amazon and Shopify sellers, helping ensure total compliance.
How PEAK BCS Assists CPA Firms with Marketplace Compliance
1. Multi-Channel Data Aggregation
We help collect and reconcile data from multiple sources—Amazon Seller Central, Shopify reports, payment gateways like Stripe and PayPal—to give CPA firms a consolidated picture of their client’s income and tax obligations.
2. Marketplace Sales Tax Reconciliation
Many states require sellers to report “gross sales,” “marketplace sales,” and “non-marketplace sales” separately. We ensure all values are correctly matched to 1099-Ks, settlement reports, and bank deposits to avoid discrepancies.
3. Income Tax Nexus Evaluation
Our team identifies which states a seller may have economic nexus in (based on revenue or transaction thresholds) and flags potential exposure—even when the platform collects sales tax.
4. Registration & Deregistration Advisory
If your client is registered in a state where Amazon is now collecting on their behalf, we’ll advise on whether they still need to file returns or if they can deregister safely without triggering notices or audits.
PEAK Business Consultancy Services brings together the right mix of tax knowledge and e-commerce expertise to support U.S. CPA firms handling complex seller portfolios. Partner with us to streamline your workload and grow your practice.
State-by-State Variations
As of 2025, almost all U.S. states with a sales tax have some form of marketplace facilitator law. However, key differences still exist:
- Some states require sellers to report marketplace sales even if they don’t collect tax.
- Others may still require sellers to file $0 returns even after deregistering sales channels.
- States like Colorado have unique documentation requirements like retail delivery fees.
Our dedicated team ensures each state’s nuances are respected in filings, reducing the risk of errors, penalties, or unnecessary correspondence with tax authorities.
Support for Amazon FBA and Shopify Plus Sellers
Marketplace compliance becomes even more critical for sellers using Amazon FBA or multichannel strategies like Shopify + Amazon integration. These sellers often meet sales thresholds across multiple states rapidly, triggering income tax nexus and franchise tax exposure.
PEAK BCS handles:
- Inventory location tracking for nexus mapping
- Filing Forms 1099-K reconciliation
- Franchise tax preparation in states like Texas and California
- Filing sales tax returns where manual collection still applies
Why U.S. CPAs Prefer Outsourcing to PEAK BCS
U.S. CPA firms working with e-commerce clients often face capacity constraints during tax season. With marketplace facilitators shifting more responsibility to platforms, CPA firms must still provide high-value advisory and compliance support—without overburdening their internal team.
By outsourcing to PEAK Business Consultancy Services, CPA firms gain:
- Scalable resources during tax deadlines
- Reliable marketplace-specific compliance support
- Significant cost savings with high-quality results
- Access to trained professionals well-versed in U.S. sales tax law
Explore our full range of tax outsourcing solutions designed specifically for U.S. CPAs and accounting firms with Amazon, Shopify, or other e-commerce clients.
Conclusion
Marketplace facilitator laws have simplified some aspects of sales tax, but they have also created new reporting burdens and gray areas for online sellers and their accountants. Don’t leave your clients exposed to compliance risk or overreporting errors.
Let PEAK Business Consultancy Services help you streamline your practice and serve e-commerce clients with excellence. Contact us today to learn how we can support your firm with marketplace tax compliance, bookkeeping, and outsourced preparation services tailored to your needs.
