The ‘Big Beautiful Bill’: 4 takeaways for sellers 

The recently passed One Big Beautiful Bill Act (or OBBB) is making waves across the e-commerce landscape, just as it grapples with the challenges presented by tariffs. Whether you’re sellling on Etsy, Amazon or Shopify, this legislation brings major tax changes that could simplify your US sales tax paperwork – or complicate your logistics. So, what happens next?

Let’s break down the four big changes for sellers, how it affects sales tax compliance for e-commerce sellers, and how it affects the major marketplaces. 

1. 1099-K reporting threshold – restored 

One key change for sellers within the US is the repeal of the USD600 1099-K threshold introduced by the American Rescue Plan Act (ARPA).  

Under the new law there’s a new threshold; sellers will only receive a 1099-K if: 

• they earn over $20,000 and  

• have more than 200 transactions per year 

How does this change affect sellers? 

This change reduces the burden on casual and small-scale sellers previously caught in a web of tax paperwork for minimal earnings. It’s been framed as relief for small companies, freeing up time spent on tax paperwork to be better spent on growing their businesses. 

2. 1099-MISC threshold – increased 

The bill also raises the 1099-MISC threshold for independent contractors and freelancers: 

• Old threshold: $600 

• New threshold: $2,000 

How does this change affect sellers? 

This raised threshold reduces the number of forms businesses must issue to subcontractors, easing compliance for sellers who hire freelancers for design, marketing, or logistics. 

3. Permanent tax cuts for small businesses 

The bill makes permanent several tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA), including: 

• 23% pass-through deduction (Section 199A) for sole proprietors and LLCs 

• 100% immediate expensing for equipment and infrastructure 

• Expanded standard deduction and child tax credit  

How does this change affect sellers?  

These provisions are a big win for small e-commerce businesses, especially those structured as pass-through entities. 

4. End of the de minimis exemption (coming 2027) 

For international sellers, the bill introduces a major shift: 

• Current rule: Imports under $800 enter the US duty-free. 

• New rule (effective July 1, 2027): All imports, regardless of value, will be subject to customs duties and processing. 

How does this change affect sellers?  

This change will increase costs for sellers outside the US who rely on direct-to-consumer shipping, especially those using platforms like AliExpress, eBay Global Shipping, or Shopify dropshipping. 

🛒 At a glance: how does the ‘Big Beautiful Bill’ affect the platform you’re selling through? 

The One Big Beautiful Bill: a mixed bag for e-commerce 

US sellers gain from reduced paperwork and permanent tax relief, but international sellers face rising costs and regulatory hurdles starting in 2027. 

Platforms must adapt their tax reporting and logistics systems to stay compliant. Now’s the time to get expert assistance to review your business structure, sourcing strategy, and tax planning to stay ahead of these changes.