03/28/2026
https://youtu.be/WGLUoVf6qao
In essence, sales taxes are state and local taxes imposed on the retail sale of goods and, in some cases, services. They are collected by sellers from consumers and remitted to the government, with the tax base and rates varying by jurisdiction. Sales taxes are intended to tax final consumption, not business inputs, and are a key component of state and local government finance in the U.S.
E-commerce and sales taxes are now inextricably linked through economic nexus standards. Out-of-state sellers making sales into a state must collect and remit sales tax if they exceed that state’s economic nexus threshold, regardless of physical presence. The Wayfair decision is the cornerstone of this new regime, and compliance is now a critical issue for all businesses engaged in online sales across state lines.
Not holding a seller’s permit when required can result in criminal and civil penalties, tax liability, and loss of resale privileges. However, if all your sales are made through a registered marketplace facilitator like eBay, and you make no direct sales, you are generally not required to hold a seller’s permit for those marketplace sales, provided the facilitator is collecting and remitting the tax.
