A Marketplace Facilitator is defined as a marketplace that contracts with third party sellers to promote their sale of physical property, digital goods, and services through the marketplace. As a result, Amazon is deemed to be a marketplace facilitator for third party sales facilitated through amazon.com.
Marketplace Tax Collection is a common term Amazon uses for marketplace facilitator tax legislations. Marketplace facilitator rules are state-specific and identify the party responsible to collect and remit sales and use tax for orders shipped to a state where marketplace facilitator laws have been enacted.
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.
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.
Amazon will calculate and remit (as the taxpayer) state use tax on all your orders but will not calculate and remit ROT.
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.
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.
Your Payments Date Range Report is the best option to locate
orders shipped to Illinois.
For more information, please see the Illinois Department of Revenue Bulletin - Illinois Use Tax Requirements for Marketplace Facilitators and Marketplace Sellers (downloads as PDF).