Amazon notified sellers it will begin collecting sales tax for orders shipped to Minnesota beginning October 1, 2018, which passed what’s come to be known as a Marketplace Facilitator law in 2017.
Amazon is adding Minnesota to the list of states for which it collects sales tax on third-party sales. Amazon began collecting and remitting Washington sales tax on January 1, 2018. In April, it added Pennsylvania, and in July, it added Oklahoma.
Here’s the message Amazon provided to sellers on Tuesday:
Tax collection for orders shipped to Minnesota State – Effective October 1, 2018
Based on changes to Minnesota State tax law, Amazon will begin calculating, collecting, and remitting sales tax for all orders shipped to customers in Minnesota on October 1, 2018.
Your existing tax calculation settings, order details, and payments reporting will update automatically to reflect this change. No action to your tax settings or seller account is required.
Answers to common questions are available in the Marketplace Tax Collection FAQ. Consider working with your tax advisor to determine any ongoing tax remittance and reporting obligations your business might have.
For more information from Minnesota, see Update for Marketplace Providers.
We recently wrote about the challenges sellers are facing with regard to online sales tax legislation around the country, which you can find on this page of the EcommerceBytes website.