Marketplace Tax Collection for Illinois FAQ
As of January 1, 2021 Amazon will be responsible to calculate, collect, and remit retailers occupation tax on 3P seller offers shipping to buyers in Illinois. The Illinois Department of Revenue published a resource page "Leveling the Playing Field for Illinois Retail Act" and flow chart to reference. Please work with your tax advisor to address any changes that may apply to your business.
The following information below applies to all sales shipped to buyers in Illinois from January 1, 2020 through December 31, 2020 and are provided for your reference.
What is unique about Illinois marketplace facilitator legislation?
All sales into Illinois will be subject to state administered use tax or retail occupational tax (ROT). However, due to state legislation and regulation, Amazon will not collect or remit ROT on seller orders. As a result, Amazon will calculate, collect, and remit (as the marketplace facilitator) state use tax on all sales destined to Illinois.
If ROT is the appropriate tax rate for the order, you may continue to have an obligation to remit the ROT even though you cannot calculate and collect the full ROT rate on your Illinois orders through the Tax Calculation Service and Amazon remits the use tax collected on all orders.
What will happen to Tax Calculation Services for Illinois?
Marketplace Tax Collection will begin on January 1, 2020. At this time, your Tax Calculation Services options and selections will no longer be available or apply on your orders destined to Illinois.
What taxes will be calculated on third-party orders shipped to Illinois?
Amazon will calculate and remit (as the taxpayer) state use tax on all your orders but will not calculate and remit ROT.
What tax am I as a seller responsible for on orders shipped to Illinois?
If ROT is the appropriate tax for an order, you may continue to have an obligation to remit the ROT even though you cannot calculate and collect the full ROT rate on your Illinois orders through the Tax Calculation Service and Amazon remits the use tax collected on those orders. Your responsibility depends on your business obligations. Please consult your professional tax advisor to determine the impacts of Illinois’ marketplace facilitator legislation on your business.
What is Amazon doing to support ROT tax calculations for sellers?
We are prioritizing enhancements to our Tax Calculation Services to support Illinois ROT vs use tax calculations for your orders. In the meantime, we encourage you to work with your tax professional to determine any impact to your business.
How do I find orders shipped to Illinois to determine the tax amount collected by Amazon?
Your Payments Date Range Report is the best option to locate
orders shipped to Illinois.
- Go to your Date Range Reports. Click Generate Report and enter a date range in the pop-up window to generate a report for the time period you want to see.
- When the report is ready, the Download button will appear under Action. You can open the report in Excel, Google Sheets, or a similar spreadsheet program.
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Apply filters in your report starting on row 8 (headers for the columns):
- Filter column K "order state" for Illinois and IL to capture all Illinois orders.
- Product sales (amounts) are located in column M.
Additional resources (all links are external to Amazon)
For more information, please see the Illinois Department of Revenue Bulletin - Illinois Use Tax Requirements for Marketplace Facilitators and Marketplace Sellers (downloads as PDF).
You can also visit the Illinois Department of Revenue website, review their guidance for remote sellers, or read through their legislation Public Act 101-0009.
