Small Business Taxes

E‑commerce and Dropshipping Tax Compliance

Updated 2025-10-28

Sales/use tax basics, marketplace facilitator rules, inventory nexus, and documentation for e‑commerce and dropshipping businesses.

  1. Sales & use tax
  2. Marketplace facilitators
  3. Inventory & nexus
  4. Returns & reconciliations
  5. International considerations

Sales & use tax

Track state thresholds; check product taxability (e.g., digital goods, clothing variations by state).

Marketplace facilitators

Platforms may collect/remit for you; retain platform reports to support filings.

Inventory & nexus

3PL or warehouse locations can create nexus; register before collecting tax.

Returns & reconciliations

Match marketplace statements to your GL; resolve under/over‑collections.

International considerations

VAT/GST obligations arise when selling abroad; consider localized tax tools.