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Amazon Notifies Sellers It Will Collect Minnesota Sales Tax

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Amazon logoAmazon 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.

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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.

Etsy already collects in Washington, Pennsylvania, and Oklahoma (it has no mention of Minnesota on its help page here, as of yet), and eBay recently announced it would begin doing so next year.

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.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.