Marketplace Facilitator
Definition
A platform that facilitates third-party sales and is required by state law to collect and remit sales tax on those sales instead of the seller. It relieves sellers of collection on marketplace orders but not of their own direct-channel obligations or registration requirements.
Related Terms in US Tax
Use Tax
A tax owed by the purchaser on taxable goods or services bought without sales tax being charged, typically from an out-of-state seller. It is the counterpart to sales tax, set at the same rate, and is self-assessed on the buyers return.
Resale Certificate
A document a buyer gives a supplier to purchase inventory free of sales tax because the goods will be resold rather than consumed. The seller must keep the certificate on file; without valid documentation the seller carries the uncollected tax on audit.
Exemption Certificate
Documentation supporting a sale made without sales tax because the buyer or the use qualifies for exemption, for example a non-profit, government body or manufacturing input. Rules and forms are state-specific, and the seller bears the burden of holding a valid certificate.
Form 1099
An IRS information return used to report various types of income other than wages. 1099-NEC is for non-employee compensation ($2,000+ to a contractor for payments made in 2026 onward; $600+ for 2025 and earlier). Businesses must file by January 31. HelloBooks tracks contractor payments for 1099 reporting.
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