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Dec 18, 2024
How do marketplace facilitator laws in Alabama ensure tax compliance among third-party sellers?
Marketplace facilitator laws in Alabama require platforms like Amazon, Etsy, and eBay to collect and remit sales taxes on behalf of third-party sellers once they meet certain sales thresholds. This ensures that taxes are consistently collected, reducing the likelihood of tax evasion. By centralizing tax collection, these laws simplify compliance for individual sellers and enhance the state’s ability to capture tax revenue from online sales.



