What is US sales tax?

US State Sales Taxes

Products sold on online e-commerce platform (“Marketplace”) and delivered to locations inside the US may be subject to sales tax

Marketplace Tax Collection Obligation

In general, marketplace facilitator is a platform who contracts with third party sellers to facilitate the sale of the sellers' products through the marketplace. Alibaba.com is thus deemed to be a marketplace facilitator to promote the sales of third-party sellers through Alibaba.com online platform.
The marketplace facilitator rules and legislation have shifted the liability for sales tax collection and remittance from a third-party seller to the marketplace facilitator. As a result, Alibaba.com is responsible to collect and remit the sales tax for goods sold by third party sellers through the online platform to states where marketplace facilitator rules and legislation are effective.
Buyer may confirm participation in the ASTEP (Alibaba US Sales Tax Exemption Program) which can easily help buyer identify himself/herself as an eligible tax-exempt buyer. Learn more about ASTEP

States where Marketplace Facilitator legislation is effective and the corresponding legislation reference:

States	Marketplace Facilitator legislation reference
Alabama	https://revenue.alabama.gov/2018/07/03/ador-announces-sales-and-use-tax-guidance-for-online-sellers/
Alaska	https://arsstc.org
Arizona	https://azdor.gov/news-events-notices/news/new-tpt-law-remote-sellers-and-marketplace-facilitators-starting-october-1
Arkansas	https://www.dfa.arkansas.gov/excise-tax/sales-and-use-tax/arkansas-remote-seller-frequently-asked-questions-faqs
California	https://www.cdtfa.ca.gov/industry/MPFAct.htm
Colorado	http://leg.colorado.gov/bills/hb19-1240
Connecticut	https://portal.ct.gov/-/media/DRS/Publications/OCG/OCG-8.pdf?la=en
District of Columbia	https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/page_content/attachments/Wayfair%20Response%20Notice%20%281%202%202019%29_0.pdf
Florida	https://floridarevenue.com/
Georgia	https://dor.georgia.gov
Hawaii	https://tax.hawaii.gov/
Idaho	https://tax.idaho.gov/n-feed.cfm?idd=4279
Illinois	https://www2.illinois.gov/rev/research/taxinformation/sales/Pages/Frequently-Asked-Questions-%28FAQs%29-for-Marketplace-Facilitators%2C-Marketplace-Sellers%2C-and-Remote-Retailers.aspx
Indiana	https://www.in.gov/dor/
Iowa	https://tax.iowa.gov/south-dakota-v-wayfair
Kansas	https://www.ksrevenue.org/
Kentucky	https://revenue.ky.gov/Pages/index.aspx
Louisiana	https://revenue.louisiana.gov/
Maine	https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP1064&item=1&snum=129
Maryland	https://taxes.marylandtaxes.gov/default.shtml
Massachusetts	https://www.mass.gov/info-details/remote-seller-and-marketplace-facilitator-faqs
Michigan	https://www.michigan.gov/treasury/
Minnesota	https://www.revenue.state.mn.us/businesses/sut/Pages/Marketplace-Providers.aspx
Mississippi	https://www.dor.ms.gov/Business/Pages/Sales-Use-Tax-landing.aspx
Nebraska	http://www.revenue.nebraska.gov/index.html
Nevada	https://tax.nv.gov/
New Jersey	https://www.state.nj.us/treasury/taxation/index.shtml
New Mexico	https://www.tax.newmexico.gov/
New York	https://www.tax.ny.gov/default.htm
North Carolina	https://www.ncdor.gov/
North Dakota	https://www.nd.gov/tax/
Ohio	https://www.tax.ohio.gov/
Oklahoma	https://www.ok.gov/tax
Pennsylvania	https://www.revenue.pa.gov/Pages/default.aspx
Puerto Rico	http://www.hacienda.gobierno.pr/
Rhode Island	http://www.tax.ri.gov/Advisory/ADV_2019_11.pdf
South Carolina	https://dor.sc.gov/
South Dakota	https://dor.sd.gov/businesses/taxes/sales-use-tax/
Tennessee	https://revenue.support.tn.gov/hc/en-us/sections/360009672231-Sales-Tax-Collection-by-Marketplace-Facilitators
Texas	https://comptroller.texas.gov/
Utah	https://tax.utah.gov/
Vermont	https://tax.vermont.gov/
Virginia	https://www.tax.virginia.gov/remote-sellers-marketplace-facilitators-economic-nexus
Washington	https://dor.wa.gov/find-taxes-rates/retail-sales-tax/tax-obligation-marketplace-facilitators
West Virginia	https://public.wvtax.gov/Business/SalesAndUseTax/ECommerce/MarketplaceFacilitators/Pages/MarketplaceFacilitators.aspx
Wisconsin	https://www.revenue.wi.gov/pages/home.aspx
Wyoming	http://revenue.wyo.gov/

Sales tax calculation

The tax rate and calculation of sales tax may be varied depending on many factors such as:

• Whether the buyer has sales tax exemption certificate

• The type of goods or products sold

• The destination address where the order is shipped to