Marketplace Tax Collection now available in more locations


#1

You may have noticed since our last Marketplace Tax Collection (MTC) update that we’ve expanded from 32 states and the District of Columbia to an additional 11 states and Puerto Rico. When items are shipping to any MTC jurisdiction, you may see sales tax calculations made by Amazon, on your orders, at no cost to you. Taxes collected by Amazon are shown with the order details and in various Seller Central reports. Amazon remits (as the taxpayer) all taxes collected as MTC to the appropriate tax authority.

Our newest jurisdictions are:

Arkansas

Indiana

Kentucky

Louisiana

Mississippi

New Mexico

Ohio

Puerto Rico

Rhode Island

Virginia

West Virginia

Wyoming

As always, please work with your tax advisor to help identify any changes to your business and tax reporting in these states. Visit our Marketplace Tax Collection FAQ that contains state-specific details and your Amazon reporting options.


#7

Super timely announcement. (not)

Many of the states listed above have had MTC since July 2019.
The FAQ page still shows Tennessee as “planned” for October 2020.
The last MTC update was in July 2020

The attention to detail is truly staggering.


#8

Do we have to pay Income tax to those states now?


#9

Thank you for this information.


#12

Since Amazon collects and remits the sales tax “as the taxpayer” does this mean the sales tax is NOT included in the gross sales on 1099 forms??


#13

what 7 states not included?


#14

@S_P_Emporium It will still be included in the 1099K. The 1099K is a report of everything that is charged to the purchaser. You’ll just need to report the sales tax as an expense.


#15

Thank you, I figured that, but they stated it weird in their announcement.


#16

Florida, Missouri, Kansas have sales tax and no MTC collection.

Delaware, Montana, New Hampshire, and Oregon don’t have sales tax.


#17

You should be registered for sales tax collection/remittance and file/pay income tax/franchise fees in every state Amazon has a fulfillment center. The same likely applies in states where Amazon does not have a fulfillment center but you have an economic nexus. California is currently and aggressively sending notices to companies who collect sales tax but are not registered with their secretary of state for income taxes and franchise fees. Welcome to 2020.


#18

It was just two years ago that I discovered just how much in sales tax liability I owed and worse how much that liability would continue to grow in the future. At the time I would not have guessed that states would be so quick to adopt Marketplace Facilitator and I’m very pleased that only three states are left.

I’m thinking that Florida will pass their marketplace facilitator law next year to help with their budget shortfalls Looks like Missouri’s sales tax system is too complicated and so they are struggling to get anywhere but are likely still working on it.

Kansas on the other hand is something else. I wouldn’t hold my breath for them to pass it.


#19

I hope florida does pass something.

I am in florida and its such a pain in the neck to find the orders i owe tax on.

last month i owed a whopping $12, and it took me more than an hour to figure that out.
(our product is pretty low priced)


#20

I am from New Hampshire and the interesting thing is our customers get charged Sales Tax. We don’t get it. Where does it go?


#21

Your customers are from states that do charge sales tax and have marketplace facilitator laws so Amazon collects the tax and remits it to the states.


#22

You should be registered for sales tax collection/remittance and file/pay income tax/franchise fees in every state Amazon has a fulfillment center. The same likely applies in states where Amazon does not have a fulfillment center but you have an economic nexus. California is currently and aggressively sending notices to companies who collect sales tax but are not registered with their secretary of state for income taxes and franchise fees. Welcome to 2020.
[/quote]

Absolutely no one should listen to this. This is wrong in so many ways.

  1. That is not the law.
  2. This is not the Constitution.
  3. Marketplace facilitator laws make the onus on Amazon to collect sales tax and removes it from the seller.

This is why people should have never registered in CA for sales tax when they sent those letters out years ago.

CA is being sued for grossly overstepping what it can do as a result of this.


#23

The majority party in your state will not pass Marketplace Facilitator Laws. The most common reason why is they consider it a tax increase.


#24

@Print_Soft It should only take minutes to do this on Amazon. Reports, Tax Document Library, Generate the report. Amazon does not standardize so you’ll find both FL and Florida listed.


#25

@New_England_Bells NH does not have a sales tax. You will see sales tax collected for most other states. Amazon remits it directly to said state. https://sellercentral.amazon.com/gp/help/G7VYHGJ8ZT2M58CP


#26

I know its not hard to do, but it takes time. then to find out the total is like $10…


#27

@Print_Soft y wife says she gets it done in about 15 minutes a month for Amazon. Other marketplaces and our website she spends a little time each week. She was so happy when eBay stopped PayPal. Made the process so much cleaner.