U.S. Supreme Court decision on Wayfair FAQ

The following overview is intended for information only and does not constitute tax or legal advice.

What is the U.S. Supreme Court decision in the Wayfair case?

In June 2018, the U.S. Supreme Court overturned a prior decision that required sellers to have a physical presence in the state before the state could require the collection and remittance of sales tax for goods or services sold to its residents. In the Wayfair case, the Court upheld a South Dakota law requiring certain out-of-state sellers to collect and remit state sales tax even if they have no physical presence in the state.

Does this decision affect tax collection for sellers?

Every business tax obligation is unique. Sellers should work with their professional tax advisor to understand their personal, business, and/or corporate tax obligations throughout the U.S.

Will Amazon start automatically collecting tax on my orders?

No, Professional sellers with an obligation to calculate tax on their orders will need to set up their tax calculation settings and remit calculated tax to the state. Amazon does not automatically calculate, collect, or remit sales tax for any state unless the state has enacted Marketplace Facilitator or similar laws.

For additional information about the states Amazon automatically calculates, collects, and remits tax, see Marketplace Tax Collection FAQ.

Does Amazon offer a tax calculation service?

Yes, Amazon offers a tax calculation service to Professional sellers. For additional information, see Tax calculation services.

Who should I contact if I have more questions about tax obligations?

If you have questions about your tax obligations in light of the above decision, you should seek legal tax advice from a qualified professional.

If you are in need of a professional tax advisor or third party services available to sellers, see External Tax Advisors.