Author Topic: Amazon Changes to Marketplace Tax Collections  (Read 2476 times)

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Southern Jewel's Fab Finds

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Amazon Changes to Marketplace Tax Collections
« on: December 13, 2017, 08:30:07 AM »
Changes to Marketplace Tax Collections

Beginning on January 1, 2018, Amazon will calculate, collect, and remit sales tax on third-party seller sales shipped to Washington State.
Washington is the first state to enact legislation requiring online marketplaces, like Amazon, to collect sales tax on behalf of their third-party sellers.
We will automatically take these actions for your Washington orders; you don’t need to update your tax collection settings or account information.



uncleleroy

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #1 on: December 19, 2017, 08:27:30 PM »
Better them than us. It would be a nightmare if we had to comply with 45 different state laws for collecting and submitting sales tax

Southern Jewel's Fab Finds

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #2 on: December 22, 2017, 04:14:18 PM »
Exactly!
Speaking for my accountant, my best friend who is an accountant and the fellow we just rented an Air BnB from whose an accountant?
Taxes are going to be a mess.

WayOutWest

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #3 on: January 01, 2018, 08:35:55 AM »
Since amazon works almost the same way as a consignment shop (especially for those that use FBA) they really should do the filing on behalf of sellers for EVERY state in which Amazon has a physical presence, even the seller's home state. When I do FBA, I'm not warehousing the item, I'm not the one handling the $ in the transaction, and I'm not the one delivering the item to the seller.

Southern Jewel's Fab Finds

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #4 on: January 01, 2018, 01:09:29 PM »
I like the way you think in regards to this matter.

WayOutWest

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #5 on: March 30, 2018, 02:32:42 AM »
Speaking of sales taxes in other states, I just stumbled across this.  Georgia is jumping on the bandwagon of states that are requiring sellers in other states, that exceed a specific volume of sales, to either collect and remit sales tax or notify the customer that they owe it. 

Specifically, Georgia House Bill 61, if passed, will require online retailers who make at least $250,000 or 200 sales a year in Georgia to either collect and remit to the state sales taxes on purchases or send “tax due” notices each year to customers who spend at least $500 on their sites.

It's passed their state house and is on it's way to the state senate.

When exactly did states get to have jurisdiction over businesses located outside their state?  :053

Speaking of, I got a notice a little while back that Amazon provided my seller info to the state of Rhode Island bcas theyve implemented similar legislation.

uncleleroy

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #6 on: March 30, 2018, 09:53:56 AM »
What gets me is the either/or proposition: either collect the tax or send your customer a letter stating they owe the tax to their state. Another reason for a company to have their own website. Make it harder to track to the store owner.

Speaking of which... I have been thinking about opening a website with only downloadable content. No inventory, no shipping, no need to have a business address listed. Only have a customer service email address. Kinda hard to get out-of-state notifications that way. With no proof of stuff being sold (since nothing will go through the post office, ups, etc. there's nothing to see.

WayOutWest

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #7 on: March 31, 2018, 11:13:01 AM »
Just a heads up, Oklahoma legislators are discussing the idea of making 3rd party sellers on Amazon collect Oklahoma sales tax.  Again, dunno why they think they have jurisdiction for it.  And, so far they're just talking about it. But. . .

The pain in the ass about Oklahoma? it's all based on where the buyer is located, even if the seller is based in Oklahoma.  So, you have to figure out is the address inside the city limits or outside the limits (to determine if city sales tax applies) then which county, to determine which county tax to apply, then add on the 4% state sales tax.  When you file, you have to put in the applicable codes for each city and county, and the amount of sales that was sent to each of those.  Very similar to Ohio's method.
« Last Edit: March 31, 2018, 11:16:49 AM by WayOutWest »

uncleleroy

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #8 on: March 31, 2018, 02:41:46 PM »
I am in Ohio and I only remit for the local county rate of 6.5%. Thank God I don't live one county over where it's 8% sales tax. But there's talk about raising it to match Cuyahoga County's 8%. Gotta love those politicians that have never seen a tax they don't like.

WayOutWest

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #9 on: April 01, 2018, 11:06:49 PM »
My mistake. Was my understand that Ohio had switched to a method similar to Oklahoma's, where it's based on buyer's location (actually based on where the buyer takes possession, which in the case of mail order is buyer's address)

uncleleroy

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #10 on: April 03, 2018, 10:13:07 PM »
Not to my knowledge. I just submit for my location. At least Ohio is getting some money.

WayOutWest

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #11 on: April 04, 2018, 06:39:43 PM »
An update - now the talks at Okla House of Reps is to make Amazon collect and submit sales tax for all 3P vendors. Which, Amazon does have a physical presence in the state, in the form of a sorting center, but does not warehouse FBA items in the state.

So, for FBA sellers, Oklahoma does have a leg to stand on, if you look at it from the perspective of Amazon being akin to a consignment shop. However, for sellers that don't use FBA. . . 

They're also talking about eventually requiring all online selling platforms to collect and remit sales tax on behalf of 3P sellers.
« Last Edit: April 04, 2018, 06:43:30 PM by WayOutWest »

WayOutWest

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #12 on: April 04, 2018, 11:02:50 PM »
Making Amazon collect sales tax from 3P sellers on Amazon for purchases in Okla has passed the Okla House. Now it goes to Okla Senate.

This is being pushed through as a way to increase teacher pay and resolve the teacher walkout. 

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #13 on: April 05, 2018, 04:07:52 PM »
In related news, South Dakota recently lost case where NewEgg, Overstock, & Wayfair fought them over this exact thing (making out of state vendors with no physical presence collect sales tax). It was found to violates SCOTUS ruling in Quill v. North Dakota.  South Dakota is still fighting it and it's now headed to Supreme Court. It's expected to be ruled upon by end of June.

https://www.google.com/amp/s/mobile.reuters.com/article/amp/idUSKBN1F12JG

WayOutWest

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #14 on: April 06, 2018, 01:16:45 PM »
Update on Oklahoma taxing 3P sellers on Amazon - it just passed the Senate (already passed the House).

Being called the Amazon Tax, it requires any remote seller and marketplace facilitator with sales of $10,000 or more to collect and provide sales taxes to the state or comply with requirements by the tax commission (in lieu of collecting & paying, notifying each customer at end of year exactly how much tax the customer owes the state).  That overview's from a tv station in Okla City. I presume they mean $10,000+ in sales that are shipped to residents of the state, rather than sales of $10,000+ total, but can't pull up the bill on the state legislation website because the search engine can't handle the fact there are non-numeric characters in the bill number.  It's Okla HB 1019XX
« Last Edit: April 06, 2018, 01:34:01 PM by WayOutWest »

uncleleroy

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #15 on: April 08, 2018, 12:53:24 AM »
I think that a marketplace facilitator tax is doable, constitutionally speaking. However, forcing websites who are not located within the state to send a letter to each customer and collect taxes for 45 states is crossing the line.

Southern Jewel's Fab Finds

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #16 on: April 11, 2018, 10:04:36 AM »
However, forcing websites who are not located within the state to send a letter to each customer and collect taxes for 45 states is crossing the line.

Agreed

uncleleroy

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #17 on: April 11, 2018, 02:24:12 PM »
And I am not being the collection agency for states where I have no physical presence. I have more important things to do with my time.

Southern Jewel's Fab Finds

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #18 on: April 12, 2018, 09:36:32 PM »
I have more important things to do with my time.

High Five!

uncleleroy

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Re: Amazon Changes to Marketplace Tax Collections
« Reply #19 on: April 13, 2018, 11:53:17 PM »
At least B&N marketplace collects taxes for all of my orders and remits it themselves. Amazon can't do the same?

  

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