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Amazon Updates Sellers on Marketplace Tax Collection

Amazon
Amazon Updates Sellers on Marketplace Tax Collection

Amazon has expanded the number of states for which it collects sales tax, it announced this week, adding an additional 11 states and Puerto Rico.

Here’s what Amazon told sellers in Tuesday’s announcement:

Marketplace Tax Collection now available in more locations
You may have noticed since our last Marketplace Tax Collection (MTC) update that we’ve expanded from 32 states and the District of Columbia to an additional 11 states and Puerto Rico. When items are shipping to any MTC jurisdiction, you may see sales tax calculations made by Amazon, on your orders, at no cost to you. Taxes collected by Amazon are shown with the order details and in various Seller Central reports. Amazon remits (as the taxpayer) all taxes collected as MTC to the appropriate tax authority.

Our newest jurisdictions are:

Arkansas
Indiana
Kentucky
Louisiana
Mississippi
New Mexico
Ohio
Puerto Rico
Rhode Island
Virginia
West Virginia
Wyoming

As always, please work with your tax advisor to help identify any changes to your business and tax reporting in these states. Visit our Marketplace Tax Collection FAQ that contains state-specific details and your Amazon reporting options.

In response to the announcement, one seller said many of the states listed had already had MTC since July 2019.

Another seller had a question, asking, “Since Amazon collects and remits the sales tax “as the taxpayer” does this mean the sales tax is NOT included in the gross sales on 1099 forms??”

You can find the announcement on Amazon Seller Central.

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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.