Marketplace Tax Collection Overview in the US
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.
Seller_ozY4GY0lRLdxb
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?
Seller_WtOwWhtSrFjva
And as I understand it, California is going to start October 1st.
Seller_jw3HRo32wY2Hk
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!
Seller_t9h6B9oRkzpSb
Very soon all states will join. Why not? Free revenues.
Seller_Y8OQ7H0PFUXzM
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
Seller_2uz2fHwoT8M6S
It is a bunch of crap. The internet was created by the Federal Government; it has NO physical boundary. If anyone has jurisdiction to tax the internet, it is the Federal Government, not the states. It is ridiculous that New York can tax a product made and listed for sale in Idaho, who’s transaction more than likely took place on a computer/server in Washington. I mean, my point is, states are trying to tax transactions that did not happen within their legal jurisdiction!!!
Seller_sgabjs6G1RuE7
[Removed off topic post]
Moderator Edit (chris_mod_amazon)
Seller_gqOjF5X6C2UQQ
Frankly, I’m ok with taxes on internet sales. But not the way they are being implemented on internet sales by state, which just causes confusion and extra workload for the sites that host third part sales. This cost just comes back to the seller. There should be a flat national fee/tax on internet sales from companies that are located in the US. If a US company moves out of the US, they will still have to participate because the majority of their sales will be in the states. This tax should be used to provide all citizens of the US, in any state, universal health care. If you don’t live in the states, you are not exempt. If you want to sell in states, then you must participate. Most of you already have health care. We don’t! Trade tariffs have been around for 100s of years.
Seller_0nASTwbyJFkXy
Please tell me how this innovation will affect third-party sellers?
Seller_g9z7VrKePQvjq
I am so glad Amazon is finally getting this together. I had completely bailed on FBA but might get back in after the tax collection in California is set up
