Tax
Marketplace Facilitator Tax — Principal
Sales tax that Amazon collects from buyers and remits to states on your behalf — you didn't actually pay this.
Also known as: MFTax-Principal, MarketplaceFacilitatorTax-Principal, MFT
What it is
Under U.S. marketplace facilitator laws (now in all 50 states), Amazon is legally required to collect sales tax on your behalf and remit it to state tax authorities. The settlement file shows two offsetting rows: one positive (the tax Amazon collected from the buyer) and one negative (Amazon withholding it to remit). Net effect on you = $0, but it's confusing because both rows show up.
How it appears in your settlement file
| amount-type | amount-description |
|---|---|
| MarketplaceFacilitatorTax-Principal | MarketplaceFacilitatorTax-Principal |
| ItemPrice | Tax |
Quick facts
- Who pays
- Buyer (collected by Amazon)
- Typical sign
- either
Example
On a $49.99 sale with 7% tax, you'll see $3.50 in 'ItemPrice / Tax' (collected) and -$3.50 in 'MarketplaceFacilitatorTax-Principal' (remitted). Net = $0.
Tips
- Do NOT count the negative MarketplaceFacilitatorTax row as one of YOUR fees. You didn't pay it; Amazon collected it from the buyer and is forwarding it to the state.
- Your 1099-K will not include this tax in Box 1a.
- If you also collect tax in non-marketplace states (rare), you may have additional obligations.
See this fee in your own settlement
Drop your settlement .txt and we'll show you exactly how much this fee added up to in your period.
Convert your settlement file →📋 For accounting assistance and educational purposes only. Not financial, tax, or legal advice. Always verify figures against your official Amazon Seller Central reports before filing taxes. Not affiliated with Amazon.com, Inc. See full disclaimer.