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Back to the TAX issue

by Seller_0Ap4oOL4teZJe

Hey Guys

I haven’t yet heard that Amazon is planning on taking any action to help us with the BIG TAX ISSUE…
I’m a bit lost here!
So what are your plans?

Tags: Taxes
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Seller_mWZyJunCxCR84
In reply to: Seller_0Ap4oOL4teZJe's post

I would think the majority of sellers out here are taking a wait and see what Amazon does attitude.

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Seller_X9AxWaXfNnGAl
In reply to: Seller_0Ap4oOL4teZJe's post

Amazon does not yet have a plan. I suspect that they do have a strategy that will depend on what the states do. States that go for the Marketplace Facilitator role can make Amazon legally responsible for sales taxation for their state. They will have extra influence if Amazon has a legal presence in their state. Other states might take chances on their own interpretations of the SCOTUS decision and draft their own legislation to mandate the out of state retailers to collect and file their sales taxes for them. There is still contradictory federal legislation that will limit their ability to enforce compliance.

I think we will all need to wait to see what the states do. Some have already put in place legislation that takes effect in 2019. There are still rumblings that Congress will do something else.

It is a tough and risky decision for any sellers to choose pre-mature action. The states do not yet understand what all this means and some assume that as soon as you are registered for sales tax that they can go after everything else that businesses that reside in the state are responsible, including state income tax, business licensing, and business taxes, etc. Getting out of a taxation registration will usually require a complete audit to determine what other fees and taxes you owe.

I doubt that anyone who has thought this through will communicate their own plans.

Dave

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Seller_d7Z0MKOJalf7S
In reply to: Seller_0Ap4oOL4teZJe's post

No change from what I have been doing all along.
I collect on the sales within my state.

Other than that nobody knows what the effect of this is yet.

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Seller_aBe737BBNJ7vE
In reply to: Seller_0Ap4oOL4teZJe's post

I’m attending a free webinar about the changes and how what to do about it given by CPA’s.
Join our sales tax experts to get an update on the changes and how to implement them. We will cover questions that online retailers and their accounting advisors need to understand so they can adapt their sales tax compliance in this new world. Some of the key points we will cover include:

•	Which states have this law today and when will the next state have it?
•	Should I start collecting everywhere or should I have my tax advisor conduct a nexus survey?
•	If I am not going to start collecting everywhere how do I plan for the next state to adopt these laws?
•	Do I need to constantly monitor my sales to know where I must start collecting?
•	What do I do about the states that want a list of my customers?

Google: Implementing the Supreme Court’s Sales Tax Decision on Wayfair v. South Dakota
it’s free. Can’t hurt…

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Seller_CAF1pkOtyOWlo
In reply to: Seller_0Ap4oOL4teZJe's post

Citing California’s 2012 state law with a “long-arm” provision that imposes a duty to collect use tax on retailers with substantial nexus in the state under the commerce clause of the U.S. Constitution, the proposal said California would modernize its law to be consistent with Wayfair.

The proposal follows the outlines of the South Dakota law, but deviates in several ways. It would set the threshold of $500,000 in sales in the previous 12 months as the trigger for collection.

Marketplace Facilitators
It also would include marketplace facilitators in the definition of retailers, making them responsible for collecting and remitting use tax on out-of-state sellers who use their platforms.

More specifically, marketplaces that facilitate a sale for another retailer that isn’t registered with the CDTFA, regardless of whether the facilitator receives compensation for its services, would have a duty to collect and remit.

Kind sounds like the law is going to force Amazon to do the work, no? I mean, Amazon can tell us we have to collect, but if the law says Amazon has to remit, I don’t think they could make us do that.

Of course they could simply get rid of all of us.

But I still the the end result here is within a year or two Amazon will be doing all the tax work for every state, and of course charging us a fee for it.

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Seller_cIIdgKwVd6QF7
In reply to: Seller_0Ap4oOL4teZJe's post

Don’t have any. Nothing has changed.

Funky

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Seller_n4shC9EMd3XuA
In reply to: Seller_0Ap4oOL4teZJe's post

In the event that you get a letter from some state trying to collect taxes from you, you explain that "As this was Amazons customer, and They handled the transaction, you will need to contact Them for remittance of taxes due.

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Seller_9mWnXIrAAWkLu
In reply to: Seller_0Ap4oOL4teZJe's post

This whole thing is a mess. No matter what, unless you are a sales tax expert, you’re going to need to seek assistance. Each state has the ability to decide, whether or not they will collect sales tax, who is responsible for collecting the tax, and who is responsible for reporting the sales tax.

I don’t know about you, but I can barely understand, let alone keep up with all the changes and requirements. As far as I’m concerned, Congress dropped the ball and the Supreme Court screwed us all.

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Seller_Czgcf74tKlXDo
In reply to: Seller_0Ap4oOL4teZJe's post

it’s pointless to plan anything now. amazon will take care of it. when Washington state started collecting sales tax on all orders shipped to there, amazon started collecting and withholding tax on our behalf. i’m sure amazon will do the same for any other state that passes similar legislature.

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Seller_GUAOqRYicSfGk
In reply to: Seller_0Ap4oOL4teZJe's post

We sell on a lot of platforms. We are NOT taking a wait and see attitude. We are planning on complying with the laws on the books. So for the past month, we’ve been getting set up with Tax Jar, and we’ve been changing how we do our accounting, so that we are able to comply. Granted, the short time period here is going to be pretty tough to comply with. Regardless, our accountant told us, get ready to comply. Get your systems in place so you can comply. I think that’s good advice.

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