This FAQ gives startup founders direct, source-checked answers to common e-commerce questions for October 2026. It covers payment reporting, import duties, subscriptions, sales tax, and marketplace duties. E-commerce here means selling goods or services online, including your own store, a marketplace, or subscriptions.
The U.S. Census Bureau estimated $340.2 billion in seasonally adjusted e-commerce sales in Q2 2026, up 3.8% from Q1. Total retail sales were $1,986.5 billion, according to the Bureau's Quarterly Retail E-Commerce report.
Table of Contents
- Do I owe tax if I get no 1099-K?
- How do ended duty-free parcels change pricing?
- What must auto-renewals and free trials include?
- Where do I owe sales tax and EU VAT?
- What if I run a marketplace?
Do I owe tax if I get no 1099-K?
Yes. All business income remains taxable even without a form. Marketplace and payment-app sellers receive IRS Form 1099-K only when gross goods and services payments exceed $20,000 and exceed 200 transactions in a year.
The Internal Revenue Service says that threshold was reinstated retroactively by the One, Big, Beautiful Bill, in its Form 1099-K FAQs. Treat every payout for goods or services as income in your books. Separate personal transfers from business payments inside each app. Reconcile payouts monthly so year-end totals match deposits.
How do ended duty-free parcels change pricing?
U.S. duty-free de minimis entry for shipments valued at $800 or less ended globally effective Aug. 29, 2025. Low-value e-commerce parcels now face inspection and country-specific duties of roughly 10%-50%.
U.S. Customs and Border Protection describes the change in its suspension of duty-free de minimis treatment factsheet. Add landed cost to every cross-border price test. A $40 accessory can gain $4 to $20 in duty before shipping and fees. Show duties at checkout, set a returns rule for refused parcels, and compare suppliers by delivered cost.
What must auto-renewals and free trials include?
Sellers using negative-option, auto-renewal, or free-trial offers must clearly disclose material terms. They must obtain express informed consent before charging and provide cancellation as simple as signup. The Federal Trade Commission says the 2024 Click-to-Cancel rule covers online, phone, in-person, B2B and B2C offers, in its final Click-to-Cancel rule announcement. Enforcement is active.
The Federal Trade Commission reported in May 2026 that Shutterstock agreed to pay $35 million after allegations of hidden subscription terms and hard-to-cancel renewals. The order also required clear disclosures, consent, and simple cancellation. Test the cancel path yourself every quarter. Fix extra steps, chat-only cancel, or missing renewal reminders before launch.
- Show price, billing date, renewal term, and trial-to-paid switch before payment
- Require an unchecked box or other clear yes for the recurring charge
- Offer cancellation in the same place and steps as signup
- Send receipts with amount, date, and cancel link
Where do I owe sales tax and EU VAT?
Every state with a sales tax imposes economic nexus without physical presence. The traditional test was $100,000 in sales or 200 transactions. Avalara reported in June 2025 that, as of Aug. 1, 2026, at least 17 states including South Dakota removed the transaction count. That shift matters for low-volume, high-ticket sellers.
One $120,000 contract can create filing duty even with few orders. Track sales by ship-to state monthly and register before you cross the sales-only limit. For EU cross-border B2C sales, eligible EU sellers may use home-country VAT up to EUR 10,000 annual turnover. Above that line, they must charge destination-country VAT through One-Stop Shop quarterly returns. The 2026 Intertax and PolishTax guide says non-EU sellers generally owe destination VAT from the first sale with no threshold.
What if I run a marketplace?
Online marketplaces must verify high-volume third-party sellers and enable reporting of suspicious goods under the INFORM Consumers Act. The Federal Trade Commission explained the duty in a June 2023 notice. Startup marketplace founders must collect bank, contact, and tax data.
Use that duty as an onboarding filter. Verify identity before first payout. Screen for counterfeit, stolen, or unsafe listings, act on buyer reports fast, and suspend sellers with missing or false data. Block payouts until bank, contact, and tax data verify.