Marketplace Tax Collection Overview in the US


#1

23 states have passed legislation that transfers the tax responsibility from you to Amazon for the products that you sell in Amazon’s store. In these 23 states, Amazon calculates, collects, and remits tax. Amazon’s tax collection in these states is based strictly on state legislation and there is currently no option for selling partners to opt-out. In July 1, 2019, based on changes to Arkansas, Indiana, Kentucky, New Mexico, Rhode Island, Virginia, West Virginia, and Wyoming State tax laws, Amazon began calculating, collecting, and remitting sales and use tax for all orders shipped to customers in these eight states. Beginning September 1, Ohio will also join the mix.

Marketplace Tax Collection States

State Effective Date
Arkansas July 1, 2019
Indiana July 1, 2019
Kentucky July 1, 2019
New Mexico July 1, 2019
Rhode Island July 1, 2019
Virginia July 1, 2019
West Virginia July 1, 2019
Wyoming July 1, 2019
Vermont June 6, 2019
Idaho July 1, 2019
New York July 1, 2019
South Carolina April 29, 2019
Nebraska April 1, 2019
District of Columbia April 1, 2019
South Dakota March 1, 2019
Alabama January 1, 2019
Iowa January 1, 2019
Connecticut December 1, 2018
New Jersey November 1, 2018
Minnesota October 1, 2018
Oklahoma July 1, 2018
Pennsylvania April 1, 2018
Washington January 1, 2018

In the image:

  • Orange States: Marketplace Tax Collection states
  • Gray States: Non-marketplace Tax Collection states

You can learn about new tax collection updates by following the stories published in the “tax” category of Seller News and in the Marketplace Tax Collection FAQ. States with active tax collection laws will be greyed out in your tax settings. When viewing an order’s details in Seller Central, you will see a tax collection model and the tax collection responsible party. When those fields show “Marketplace Facilitator” and “Amazon Services, Inc.,” respectively, that indicates that Amazon is responsible for collecting tax for that order.


#2

I have said it before and I say it again: THESE TAXES ARE UNCONTITUTIONAL! They represent a tariff on imports from another state, Absolute ciolation of the Interstate Commerce Clause!! Why doesn’t amazon and its team of lawyers fight this atrocity?


#3

And as I understand it, California is going to start October 1st.


#4

Can someone please confirm this?
I heard California and Texas are on the list for 1st October.


#5

Having had some experience of sales tax collection, it’s a complete nightmare. “In Washington, companies that have more than $100,000 in retail sales or 200 transactions now must register with the state and collect sales tax from customers.” What a joke… 200 transactions. Ultimately these taxes just shore up the position of monopolies, guess who!


#6

If CA is in I’ll start up my FBA again.


#7

Very good editorial today on the WSJ about the chaos that resulted from the Wayfair ruling.


#8

Very soon all states will join. Why not? Free revenues.


#9

Given that “constitutional” is defined by Supreme Court rulings and they have ruled that these taxes are in fact allowed, I’m not sure how you think you have a leg to stand on here.

Why doesn’t amazon and its team of lawyers fight this atrocity?

You’re a bit late to the party.

bunga bunga!


#10

I have said it before and I say it again: THESE TAXES ARE UNCONTITUTIONAL! They represent a tariff on imports from another state, Absolute ciolation of the Interstate Commerce Clause!! Why doesn’t amazon and its team of lawyers fight this atrocity?

They are not unconstitutional. The way they are being implemented is unconstitutional as Congress has not authorized it.

Amazon is the seller of record for third party sales on their website. They have to be responsible for sales taxes.


#11

Legislation by the courts never ends well. Democracy cancelled?


#12

Question - My nexus state is CA and currently I am using TaxJar to help me collect and remit taxes for CA. If Amazon handles that from October 1, then can I just cancel TaxJar or do I still need it for something else?


#13

That is B.S. Amazon is not the seller. I am the selleer. Amazon is just a middleman providing financial and advertising services for a hefty fee.

No state can be allowed to tax an import from another state. That’s the same as if they had collectors on all the roads leading into their state robbing the travellers – er,. of course i mean, collecting the taxes.

Come to think of it, what is the difference between taxation and theft?


#14

Does this mean that the states that already began which included NY (where I am based) I dont have to report it anymore to my accountant? Amazon will take care of it all together?

Thanks


#15

I am curious about it too. Once the states joined the Marketplace Tax Collection, can we cancel the registrations with the states since there will be no sales revenues to report? This would save time and cost by not filing the state sales tax returns. Can anyone chime in?


#16

Once Marketplace facilitator is in effect, Amazon collects all sales tax.

You still have to pay all their annual fees and file paperwork for your business.

I cannot give specific advice on what you have to do. Each state is different.


#17

That is great… amazon should have always calculated , collected and remitted … amazon is the one collecting the tax and knows the Credit card numbers… weird how amazon words things …


#18

Gotcha, thanks much! Yes, I will be handling the annual business registration fee etc. separately. Was just wondering about sales tax. I think I can then cancel TaxJar after Oct 1. That is awesome.


#19

Yes, CA is definitely in on Oct 1st.


#20

@Lihkin I would suggest watching your timing. Depending on how often your report your sales tax, you may need them a little longer.