TITLE: Texas Marketplace Fee Tax: What Sellers Must Do Before the Rule Changes
Texas is preparing to remove marketplace and platform fees from its taxable data processing services rules. This could reduce compliance costs for sellers using Amazon, eBay, Etsy and other online platforms.
However, the Texas marketplace fee tax has not ended yet.
On 30 September 2026, Texas Comptroller Don Huffines signed an executive order directing his agency to amend Rule 3.330. The proposed amendment must still be filed with the Texas Secretary of State, published in the Texas Register and opened for a 30-day public comment period.
Until the amended rule is formally adopted and becomes effective, you must continue using the current tax treatment.
The Texas update could remove tax from marketplace fees
The proposed change targets platform fees paid by sellers for services such as:
- Marketplace referrals.
- Product listing and storage.
- Advertising.
- Fulfilment.
- Transaction processing.
- Analytics and related platform services.
These services can involve the computerised entry, retrieval, search, compilation, manipulation or storage of data. That is why Texas has treated some marketplace provider services as taxable data processing services under Rule 3.330.
The change would affect sellers using platforms such as Amazon, eBay and Etsy. It may also cover similar fees paid through marketplace channels connected to Shopify and other ecommerce systems.
The Texas Comptroller described the existing treatment as a hidden double tax. The customer may pay sales tax on the underlying goods, while the seller also pays tax on the platform fee connected with the same transaction.
Understand the current data processing services tax
The previous Comptroller amended Rule 3.330 with changes applying from 1 October 2025. Under that approach, marketplace provider services could fall within the definition of taxable data processing services where the platform stores listings, maintains transaction records or compiles seller analytics.
Texas provides a statutory 20% exemption for data processing services. As a result, tax has generally applied to 80% of the relevant marketplace fee, rather than the full fee.
For example, if an eligible platform fee is $1,000, the taxable base may be $800 before applying the applicable state and local tax rates.
Your exact treatment can depend on the fee type, platform contract, customer location, registration status and whether the platform or seller handles the tax calculation. Keep the supporting records for each conclusion.
Do not stop collecting or self-assessing tax early
The executive order starts a rulemaking process. It does not itself amend Rule 3.330.
The proposed amendment must pass several stages:
- The Texas Comptroller prepares the proposed rule text.
- The proposal is filed with the Texas Secretary of State.
- The proposal is published in the Texas Register.
- A 30-day public comment period begins.
- The agency reviews comments and may revise the proposal.
- The amended rule is formally adopted.
- The effective date is confirmed.
This means you should not stop collecting, self-assessing or remitting tax on marketplace fees simply because the executive order has been signed.
Do not amend prior returns. Do not reclaim tax. Do not change your accounting software rules based only on the announcement.
Wait for the final rule and its effective date.
Check whether your business is affected
This update matters if you operate through a Texas-registered entity or have Texas-related sales tax obligations and pay marketplace fees.
It may be relevant to:
- Amazon sellers with Texas customers.
- Amazon FBA foreign sellers using a US fulfilment structure.
- Sellers operating through a US LLC.
- eBay and Etsy merchants.
- Shopify merchants using marketplace channels.
- Digital businesses reselling services through platforms.
- International companies selling into the United States.
- Businesses using third-party fulfilment or platform advertising services.
The change may also matter to businesses that do not have a physical presence in Texas but have registration or economic nexus obligations there.
A marketplace facilitator may collect sales tax on the sale of goods. That does not automatically resolve your other tax responsibilities. Marketplace facilitator rules generally do not cover your federal income tax, Form 5472 filing obligations, or tax on platform fees.
Complete this Texas compliance checklist now
Use the current rules until the amended rule takes effect.
1. Keep your existing tax treatment unchanged
Continue applying your current process to marketplace fees. This helps you avoid underpayments, incorrect returns and possible interest or penalties.
If your platform charges tax on eligible fees, record that tax separately. If you self-assess use tax, continue doing so under your existing process.
2. Build a marketplace fee schedule
Pull a report covering fees paid from October 2025 onwards.
Include:
- Platform name.
- Fee category.
- Invoice date.
- Settlement period.
- Texas taxable amount.
- Tax charged or self-assessed.
- Return period reported.
- Supporting invoice or settlement report.
This gives you a clear audit trail if the final rule changes future treatment.
3. Preserve platform records
Keep platform fee invoices, settlement statements, advertising invoices, fulfilment reports and transaction records.
Do not rely only on a bank statement. Bank statements show payment but may not explain what service the platform provided or how the fee was calculated.
Good records will help you support the original treatment and identify any future adjustment opportunity if the final rule permits one.
4. Monitor the Texas Register
The 30-day comment period will begin after the proposed amendment is published. It does not necessarily begin on the date of the executive order.
Monitor the Texas Comptroller’s official news releases and the Texas Register.
Record:
- Publication date.
- Comment deadline.
- Proposed wording.
- Effective date.
- Any transition or retroactive provisions.
- Final adoption notice.
5. Do not reclaim tax based on the order alone
The executive order does not confirm that previously paid tax can be refunded. It also does not establish that the final amendment will apply retrospectively.
Wait for the final rule before considering amended returns, credits or refund claims.
Watch these other US changes from 1 October 2026
Texas is the main development, but international sellers should review several other US compliance items.
Washington, D.C.: verify the sales tax rate before changing systems
A planned increase in the general District of Columbia sales and use tax rate requires careful checking. The latest notice from the D.C. Office of Tax and Revenue states that the general rate remains 6% through 30 September 2027, with the 7% rate postpo
