MPF is commonly defined as a business that 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.
MTC is a common term Amazon uses for marketplace facilitator tax laws that identify the party responsible to collect and remit sales and use taxes for orders shipped to a jurisdiction (state, county, city, district) where marketplace facilitator tax laws have been enacted.
|Alabama*||January 1, 2019|
|Alaska**||April 1, 2020|
|Arizona||October 1, 2019|
|Arkansas||July 1, 2019|
|California||October 1, 2019|
|Colorado**||October 1, 2019|
|Connecticut||December 1, 2018|
|District of Columbia||April 1, 2019|
|Florida||July 1, 2021|
|Georgia||April 1, 2020|
|Hawaii||January 1, 2020|
|Idaho||June 1, 2019|
|Illinois***||January 1, 2020 - December 31, 2020|
|Indiana||July 1, 2019|
|Iowa||January 1, 2019|
|Kansas||July 1, 2021|
|Kentucky||July 1, 2019|
|Louisiana||July 1, 2020|
|Maine||October 1, 2019|
|Maryland||October 1, 2019|
|Massachusetts||October 1, 2019|
|Michigan||January 1, 2020|
|Minnesota||October 1, 2018|
|Mississippi||July 1, 2020|
|Nebraska||April 1, 2019|
October 1, 2019
|New Jersey||November 1, 2018|
|New Mexico||July 1, 2019|
|New York*||June 1, 2019|
|North Carolina||February 1, 2020|
|North Dakota||October 1, 2019|
|Ohio||September 1, 2019|
|Oklahoma||July 1, 2018|
|Pennsylvania||April 1, 2018|
|Puerto Rico||July 1, 2020|
|Rhode Island||July 1, 2019|
|South Carolina||April 29, 2019|
March 1, 2019
|Tennessee||October 1, 2020|
|Texas||October 1, 2019|
|Utah||October 1, 2019|
|Vermont||June 6, 2019|
|Virginia||July 1, 2019|
|Washington||January 1, 2018|
|West Virginia||July 1, 2019|
|Wisconsin||January 1, 2020|
|Wyoming||July 1, 2019|
*Some MTC tax rules do not apply to certain types of product sales or services offered by a third-party seller. See your Tax Settings for your calculation options.
**Some MTC tax laws limit Amazon’s ability to calculate, collect, and remit certain taxes. See the state specific link in the table above for more information.
***MTC for Illinois state use tax only through December 31, 2020. See MTC for IL FAQ for information. From January 1, 2021, MTC includes both state and local retail occupation tax.
Marketplace Tax Collection (MTC) for the US will be applied to the product you sell based on each jurisdiction’s (state, county, city, district) MTC tax legislation. All sellers must agree to automatic Marketplace Tax Collection (MTC), irrespective of their location, volume or quantity of sales made by the seller, or Amazon support of TCS for non-MTC products or jurisdictions.
We encourage you to work with your tax professional or tax jurisdiction to determine any impact to your business.
When Marketplace Tax Collection (MTC) applies, Amazon uses the product category and item description you provide or select when creating a product listing to determine if your product is taxable.
The seller is responsible for tax calculation, collection, and remittance obligations of taxes on products shipped to a customer in a non-MTC.
If you participate in Tax Calculation Service (TCS), your tax settings will apply when MTC rules do not. Please see your Tax Settings, Tax Calculation Service help page, and Tax Calculation Services Terms for additional information.
You may continue to have a reporting obligation for sales and use taxes Amazon calculates, collects, and remits on your product sales, any taxes you calculate via your participation in Tax Calculation Service, and taxes unsupported by our service.
You do not need to remit MTC taxes Amazon has calculated, collected, and remitted under MTC rules and identified with your order/transaction details (See “Account Reporting Information” below). Amazon will remit MTC taxes according to each tax authority legislation as the taxpayer.
Amazon is only responsible for collecting and remitting taxes that a state law requires. Amazon is not responsible for filing taxes on your behalf, including any income or gross receipts taxes that may be due on your sales into the state.
If you have double remitted sales and use tax from your Amazon orders to a state with Marketplace Tax Collection, you will need to work with your tax advisor and/or state to determine your refund options.
Yes, products you ship from any location to a jurisdiction with active MTC rules are subject to the tax rules and legislation of the jurisdiction to which you deliver your product/order, including Marketplace Tax Collection rules.
If Amazon determines it has an obligation to calculate, collect, and remit taxes on your products, tax collected from the customer will be shown with the order transaction details and applicable account reporting.
Typically, you do not need to take action in your seller account when MTC begins. Your existing tax calculation settings, order/transaction details, and payment reporting will update automatically to reflect Amazon’s responsibility.
Non-MTC product types and/or supported jurisdiction options, where you may continue to have a tax responsibility, will also update automatically in your Tax Settings.
Unexpected taxability behavior may occur if your product listing(s) and/or tax settings are not up-to-date. We recommend you regularly review and update the following information in your account settings:
You should work with your tax advisor or the tax authority to identify changes to your reporting and any personal or corporate tax obligation.
You do not need to edit your tax settings for an MTC State. An MTC State with non-MTC jurisdictions supported by Amazon will be updated and editable in your Tax Settings as soon as support becomes available.
Your normal order/transaction details and account reporting acts as the “statement” that identifies taxes Amazon calculated, collected and remitted vs taxes calculated by your Tax Settings that are disbursed to you, for remittance to a tax authority.
Order/transaction details, payments and tax reporting identified below will include the total tax collected from a buyer. Any MTC taxes will then be shown as a deduction for “Marketplace Withheld Tax” or “Marketplace Facilitator” representing any amount Amazon is responsible for under MTC rules. Any remaining tax amount is your responsibility to report and remit to the appropriate tax authority.
Marketplace Tax Calculation details are available in the Tax Document Library, Marketplace Tax Collection Report. See Sales Tax Information in Seller Reports Help page for additional information.
For individual order details, use the Order Details or Transaction Detail pages. When Tax Collection Model equals Marketplace Facilitator and Tax Collection Responsible Party equals Amazon, tax is automatically collected by Amazon.
For orders where MTC applies, Amazon may accept an ATEP enrolled buyer exemption. However, sellers will not have access to download the exemption document as taxes collected under MTC are Amazon’s responsibility.
Your ATEP settings and document availability will continue apply to non-MTC transactions where your tax settings are used. For additional information see How ATEP Works.
No, Amazon does not apply the TCS fee for the MTC portion of tax calculations.
Tax calculations for orders to non-MTC jurisdictions will continue to use your tax settings and any applicable service fee will still apply to those calculations.
No, there currently is no option to opt out.
No, there currently is no option to restrict sales to specific destinations supported by the Amazon store for tax reasons.
Sellers are responsible to answer buyer tax-only refund requests on:
Amazon Customer Service will answer buyer tax-only refund requests on: