Liability Determination is a tax-determination feature designed for marketplace transactions. It applies marketplace facilitator laws to determine whether the seller or the marketplace is responsible for collecting and remitting sales tax on a transaction. These regulations can vary by country and region.

Liability Determination automates this process, eliminating the need for businesses to create and maintain complex taxability logic. The service determines tax liability during tax calculation.

The service returns the liable party in the taxLiabilityOwner field. For transactions where a third party—that is, the marketplace—is liable, the value returned is MARKETPLACE.

Supported countries and regions

For more information, see Supported Countries and Regions.