Amazon has told sellers in the USA that it will be providing information to the Massachusetts tax authorities under the terms of a new law. Specifically, the state government is asking for details of goods stored in the state in Amazon warehouses as part of the FBA scheme.
In August 2017, the Massachusetts Department of Revenue (DOR) asked Amazon to identify Amazon sellers that store, or have stored inventory, in the state. They initially refused to provide the information. But in September last year the state Superior Court gave Amazon 20 calendar days to comply with the request. This week, having dragged its heels, Amazon has revealed its intention to cooperate.
Amazon has reportedly sent this message in an email to merchants:
“Amazon has received a valid and binding legal demand from the Massachusetts Department of Revenue (DOR) requiring that Amazon disclose the following information about sellers to the DOR:
-Contact information (name, address, federal tax ID number, and phone number)
– Estimated value of the seller’s inventory in our Massachusetts fulfillment centers, calculated based on the seller’s selling prices in late 2016 and in 2017
To comply with our obligations under the law, we plan to provide your information to the DOR by January 26, 2018. Because each seller’s business and tax needs are unique, we encourage you to consult with a tax advisor to answer any questions you may have.” There is more information here.
This is currently only applicable to the Massachusetts tax authorities but it could be a lucrative precedent for other US states in due course. Sales tax is often payable if a seller has stock held in a state but it’s not always easy to administer or prove. This new law could pave the way for more states to ask marketplaces for sales data.
It also reflects the trend for marketplaces in general, specifically eBay and Amazon, to provide governments with information generally to ensure that ecommerce traders are paying their fair share.
Do let us know if you’ve received this email from Amazon and what you think of it.
2 Responses
eBay and Amazon very good, pity they have never paid their OWN fair share, they are the industry leaders in tax evasion themselves.