In the United States, a marketplace facilitator is commonly defined as a business who contracts with third party sellers to promote the sale of physical property, digital goods, and/or services owned and supplied by a third party through an online store. Based on this definition, Amazon is a marketplace facilitator for third party sales facilitated through our store and is responsible to calculate, collect, remit, and refund sales and use tax on orders shipped to a jurisdiction (state, county, city, district) that has enacted marketplace facilitator or similar laws.
Marketplace Tax Collection is a common term Amazon uses for marketplace facilitator tax legislations. Marketplace facilitator rules can be country, state, and/or jurisdiction specific (country, state, county, city, district). These rules identify the party responsible to collect and remit sales and use tax for orders shipped to a jurisdiction where marketplace facilitator laws have been enacted. In these jurisdictions, Amazon will be responsible to calculate, collect, remit (as the taxpayer), and refund sales and use taxes.
Alaska does not currently impose state level sales and use tax. Each local government (city, borough, jurisdiction, municipality, etc.) governs their sales and use tax ordinances and rules independently of each other.
The Alaska Remote Seller Sales Tax Commission is a single-level administration that coordinates Alaska’s local government remote seller and marketplace facilitator tax reporting and remittance rules and ordinances. These local government ordinances shift the tax responsibility to Amazon for the jurisdictions that opt-in to participate.
As a result, Amazon is unable to calculate, collect, or remit sales and use tax on orders destined to non-participating jurisdictions. If local sales and use tax is appropriate for an order destined to a non-participating jurisdiction, you may continue to have an obligation to remit the full sales and use tax rate, even though you cannot calculate and collect tax from buyers on orders to non-participating jurisdictions using the Tax Calculation Service.
Marketplace Tax Collection will occur as Amazon implements local ordinance changes. Taxes collected by Amazon will be reflected in your order reports, available in Seller Central.
For more information, see Sales tax information in seller reports.
Effective April 1, 2020, Tax Calculation Services will no longer support tax calculations on buyer orders destined to non-participating jurisdictions.
Amazon is the responsible party to calculate, collect, and remit (as the taxpayer) local sales and use taxes on your orders destined to participating jurisdictions.
Amazon will calculate and remit (as the taxpayer) to participating jurisdictions local sales and use taxes on your orders, but will not calculate and remit non-participating jurisdiction taxes.
You may continue to have an obligation to remit the full sales and use tax rate, even though you cannot calculate and collect tax from buyers on orders to non-participating jurisdictions using the Tax Calculation Service.
Your responsibility depends on your business obligations. Please consult your professional tax advisor to determine any impact of Alaska’s jurisdictional marketplace facilitator legislation on your business.
We are currently working on enhancements to our Tax Calculation Services to support non-participating jurisdictions. In the meantime, we encourage you to work with your tax professional to determine any impact to your business.
Your Payments Date Range Report is the best option to locate orders shipped to an Alaska jurisdiction.
For more information, visit the Alaska Remote Seller Sales Tax Commission page.