Amazon.com will begin calculating, collecting, and remitting sales and use tax for all orders shipped to customers in Arkansas, Indiana, Kentucky, New Mexico, Rhode Island, Virginia, West Virginia, and Wyoming on the 1st of July 2019. This is to comply with changes to these States tax laws.
It’s all down to Marketplace Facilitator legislation, a set of laws that shifts the sales and use tax collection and remittance obligations from a third party seller to the marketplace facilitator. As the marketplace facilitator, Amazon will now be responsible to calculate, collect, remit, and refund state sales tax on sales sold by third party sellers for transactions destined to states where Marketplace Facilitator and/or Marketplace collection legislation is enacted. In certain states, local taxes are not included within Marketplace Facilitator Legislation; Amazon is not responsible for those taxes.
On the 1st of July your existing tax calculation settings, order details, and payments reporting on Amazon.com will update automatically to reflect this change. Changes to your tax settings or seller account are not required based on the state law changes. However, Amazon suggest that you may consider working with your tax advisor to determine if your business has any other ongoing tax remittance or reporting obligations.
States where Amazon.com already collect sales and use tax are Alabama, Connecticut, District of Columbia, Idaho, Iowa, Minnesota, Nebraska, New Jersey, New York, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont, and Washington.
This change to Amazon collecting sales and use tax also applies to other marketplaces, you can find information for eBay.com here.
