State Tax collections


#1

I just got a letter from the State of Washington Department of Revenue. It was how to get an extension for paying taxes on my seller account. Am I incorrect in thinking Amazon collected the state sales tax and will handle payment to the state. I always have gotten forms to send back to the state until this year. I assumed it was because Amazon would handle the payment. Does anyone know what to do?


#2

Amazon has been handling sales tax for the state of Washington since Jan 1, 2018 (first state on board).

But you may still be required to file, indicate the sales totals and show taxes as paid through the MF program.

Not every state is handling it the same way.


#3

I don’t know the rules for Washington, but in NJ, we still have to file quarterly sales tax reports, even though the report balances out to zero, since Amazon and eBay pay what they collect. You may still have to file.

Additionally, it’s not clear; was this in regards specifically to Sales Tax? Remember that you will also have to file (and pay) income tax on what you earn on Amazon. Perhaps it’s just because of the time of year, but when I first read your post, my first thought was that it was Income Tax; then I realized that it was ambiguiose.


#4

First of all, what state are you located in? That will affect the answers you receive.


#5

Washington State


#6

Sale tax only , doesn’t amazon collect it?


#7

Ahem. I answered that question in the second post.

Go to the Marketplace Facilitator information page to learn more.

Check with the state tax board to find out your filing responsibilities.


#8

In WA you still have to file your Combined Excise tax return with the DOR quarterly, however, under your deductions line code, you enter your Retail Sales Tax Collected by Facilitator, which will offset taxes owed.

So yes, Amazon does pay the sales taxes collected for you, but you still need to file a return with the WA DOR.


#9

No help


#10

Thank you