E-commerce
October 1, 2026
Wondering how the new sales tax law targets marketplace sellers? The answer lies in a single sentence: marketplaces like Amazon, eBay, or Walmart must now collect sales tax on behalf of third-party sellers, or inform customers of their use tax obligations. This rule, already in effect in Washington State, could soon spread to other states, and it is a game-changer for all online merchants.
The catch? Many sellers are still unaware of their obligations, and penalties for non-compliance can climb quickly. Understanding how this law works is essential to avoid unpleasant surprises and adapt your marketplace selling strategy.
So, how does this law concretely impact you? On the agenda:
What is a "marketplace facilitator" according to the law?
What are the obligations of marketplaces towards third-party sellers?
How does this law affect remote sellers with no physical presence?
What are the penalties for non-compliance with the rules?
How can Qstomy help you manage these changes?
Let's get started.
Summary
What is a "marketplace facilitator" under the new law?
Washington State law defines a "marketplace facilitator" as any platform that contracts with sellers to facilitate the sale of their products. In practice, this includes online marketplaces like Amazon, eBay, Walmart, and others that connect buyers and sellers.
The definition is broad: it covers transmitting offers, managing technological infrastructure, providing virtual currency, or even developing software related to sellers' products. Clearly, if your platform allows a third-party seller to sell, you are probably affected.
This definition is not limited to e-commerce, but it primarily targets online sales. Marketplaces must therefore check whether they fall within this scope, as the resulting obligations are significant.
For sellers, it is essential to know whether the marketplace on which they operate is considered a facilitator. This determines who is responsible for collecting the tax and what information must be provided to customers. A marketplace that does not comply with this definition could expose sellers to unforeseen tax risks.
Convert over 2,000 customers on average per month with Qstomy.
The world’s 1st Shopify AI dedicated to customer conversion
Empowering 200+ e-commerce merchants
What are the obligations of marketplaces towards third-party sellers?
Facilitating marketplaces have two main options: collect sales tax on behalf of third-party sellers, or inform customers of their use tax obligation. This second option also involves providing an annual notice to the state's department of revenue.
Collecting the tax is often preferred because it simplifies the process for both sellers and customers. However, it requires a robust technical setup to calculate, collect, and remit the correct amounts.
If the marketplace chooses the notification option, it must display a clear warning on its website and on sales documents, under penalty of fines. This strategic decision has a direct impact on the shopping experience and compliance.
Sellers must be aware of these obligations, as they may be required to provide additional information to the marketplace to facilitate collection. Transparent communication between the marketplace and sellers is crucial to avoid errors and penalties.
How does this law affect remote sellers with no physical presence?
For remote sellers, meaning those without a physical presence in the State of Washington, the law changes the game. If you sell through a marketplace that has a presence in the state, your customers will have to pay sales tax or receive a use tax notice.
This means your displayed prices might no longer be accurate, and your customers could be surprised by additional fees. It is therefore crucial to communicate clearly about these changes to maintain trust.
Furthermore, if you sell directly on your own site, you remain responsible for collecting the tax if you have a "nexus" link with the state. The law does not automatically cover you.
It is recommended to review your pricing strategies and inform your customers about any applicable taxes. Good communication can prevent cart abandonment and complaints, while reinforcing your credibility.
What are the penalties for non-compliance with the rules?
Penalties for non-compliance are severe. Fines can quickly reach triple digits and accumulate daily. Furthermore, failure to comply with notice or reporting obligations can lead to another round of fines.
For marketplaces, choosing not to collect the tax while neglecting notifications is risky. Washington's tax authorities have made it clear that they are closely monitoring marketplace participants.
For sellers, it is essential to verify that your marketplace is meeting its obligations, because in the event of a failure, it is your reputation and your cash flow that could suffer.
It is therefore prudent to document all communications with your marketplace regarding the tax, and to keep proof of compliance. In the event of a dispute, these elements can be valuable in protecting you.
Which states follow the Washington model?
Minnesota has adopted similar rules, but with a delayed effective date. Other states are watching closely and could follow suit, making multi-state compliance increasingly complex.
For merchants, this means it is no longer enough to know the rules of your own state. You must track legislative developments in all states where you sell, especially if you use marketplaces.
Regular legal monitoring is recommended, or the use of automated tools that integrate tax changes. This saves you from costly errors and tedious manual updates.
By staying informed of legislative trends, you can anticipate changes and adapt your sales strategy accordingly, thereby minimizing the risks of non-compliance.
How does the law define "facilitation of sale"?
Sales facilitation is defined very broadly. It includes payment processing, inventory management, listing publishing, pricing, order taking, advertising, customer service, and even return management.
This definition encompasses almost all activities a marketplace can perform for a seller. It is therefore difficult for a platform to escape its obligations.
For sellers, this means that most major marketplaces will be considered facilitators, which simplifies tax collection but reduces your control over the process.
It is important to understand that even seemingly minor activities, such as providing a price comparison tool, can be considered facilitation. This broadens the scope of obligations for marketplaces.
What is the difference between sales tax and use tax?
Sales tax is collected by the seller at the time of the transaction, while use tax is owed by the buyer when no sales tax has been collected. It is a mirror tax, designed to prevent out-of-state purchases from escaping taxation.
Under Washington law, if the marketplace does not collect the sales tax, it must inform the customer of their use tax obligation. This mechanism ensures that the state receives its revenue, even on remote sales.
For merchants, understanding this distinction is crucial to knowing whether you need to charge the tax or simply inform your customers.
A good understanding of these concepts allows you to better advise your customers and answer their questions, thereby strengthening their trust in your store.
What are the risks for sellers using non-compliant marketplaces?
If your marketplace does not meet its obligations, you could be held liable for uncollected taxes. Tax authorities can come after you, even if you do not have a physical presence in the state.
Additionally, use tax notices sent to your customers can harm your customer relationships. No one likes to receive a tax bill after a purchase, especially if it was not clearly communicated.
It is therefore essential to choose marketplaces that take their tax responsibilities seriously, and to regularly verify their compliance.
When in doubt, do not hesitate to ask your marketplace for proof of compliance. A reliable marketplace will be transparent about its tax collection and remittance processes.
How to prepare your shop for marketplace tax changes?
The first step is to check if your marketplace already collects the tax for you. If it does not, you must anticipate use tax notices and proactively inform your customers.
Next, update your product listings and sales policies to reflect any price changes. Clear communication avoids bad surprises and disputes.
Finally, monitor changing laws in the states where you sell. Tools like those offered by Qstomy can help you automate these updates and stay compliant effortlessly.
Preparing your store for these changes allows you to maintain a seamless customer experience and protect your online reputation.
What are the benefits of tax collection by the marketplace?
One of the main advantages is administrative simplification. The marketplace takes care of calculating, collecting, and remitting the tax, which frees up your time and reduces the risk of error.
This also improves the customer experience, as the prices displayed include the tax, avoiding surprise fees at the time of payment. Customers appreciate the transparency.
Finally, this protects you in the event of a tax audit, as the responsibility for collection lies with the marketplace, provided it meets its obligations.
Additionally, this allows you to focus on other aspects of your business, such as marketing or product development, without worrying about tax details.
How does Qstomy help manage customer tax questions?
Qstomy, your Shopify AI agent, can automate answers to frequently asked questions about taxes, whether on marketplaces or your store. It integrates tax policies into its responses, thereby reducing the load on your customer support.
For example, if a customer asks why a tax was added to their cart, Qstomy can explain the applicable law and reassure the customer. This improves satisfaction and reduces support tickets.
Additionally, Qstomy can help you update your help pages and FAQs by integrating new tax rules. This strengthens your credibility and compliance.
By automating these responses, you save time and ensure consistency in the information provided, which is essential to avoid misunderstandings.
What is the checklist before selling on a marketplace subject to the new law?
Before getting started, check that your marketplace is indeed a "facilitator" and that it collects the tax for you. If this is not the case, prepare to inform your customers about the use tax.
In brief
Check your marketplace's compliance.
Communicate clearly about taxes.
Automate your responses with Qstomy.
FAQ
Q: What should I do if my marketplace does not collect the tax? A: Inform your customers about the use tax and follow the state's recommendations.
Q: Does this law apply to my Shopify store? A: It applies to sales via marketplaces with a physical presence in the state, but also check your direct obligations.
Q: Can Qstomy help me manage tax questions? A: Yes, Qstomy can automatically answer customer questions about taxes, based on your policies.
To go further: E-commerce support policy: writing clear rules for customers and agents - Qstomy, How to handle customer questions about taxes applied to gift cards - Qstomy, How to handle customer questions about member-only sales - Qstomy, Online sales tax: rules and best practices - Qstomy, AI Chatbot for size guides: reducing returns in fashion e-commerce - Qstomy, Integrating customer service answers into a useful e-commerce SEO strategy - Qstomy, Does Texas levy a sales tax on online purchases? - Qstomy.
Enzo
October 1, 2026
