As states start to come around to the idea that the future is the Internet, we’re hitting a tipping point where the majority of them are placing the burden for collecting sales tax from marketplace sales on the marketplace operator instead of the seller. For Amazon, here’s the list of states joining the ranks on October 1st.
Amazon will start collecting and remitting sales tax for Amazon marketplace sales automatically starting October 1st for the below states. This process is transparent and automatic, but it is 100% still the responsibility of the seller to file sales and use tax returns in the relevant states in which they have nexus.
- North Dakota
Sales to customers residing in these states will see sales tax added to the order from the customer’s perspective like all other marketplace-facilitator-taxation requirement states. The existing sales tax collection settings within your Seller Central account will update automatically to reflect these changes.
Consider speaking to a professional if your business may have other outstanding obligations or other tax considerations.
For the entire list of states currently requiring marketplaces–including Amazon–to collect and remit sales tax on a seller’s behalf, see this list.