EcommerceBytes-NewsFlash, Number 3077 - May 31, 2013     2 of 4

Yahoo Warns Merchants About Online Sales Tax Bill

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This week, Yahoo informed online retailers about pending online sales tax legislation, saying some retailers using Yahoo Merchant Solutions had reached out to the company with questions about the bill currently moving through Congress.

While online marketplaces such as Amazon, eBay and Etsy have taken stances in the online sales tax debate, ecommerce platforms and service providers have been relatively quiet on the issue, though their merchant clients are no less effected. Unlike the online marketplaces, Yahoo took a neutral stance on the legislation in its letter to merchants.

The Yahoo! Small Business team explained that the if the Marketplace Fairness Act becomes law, it would affect a certain number of retailers using Yahoo! Merchant Solutions, specifically those who sell more than $1 million in goods and services out-of-state annually.

"The pending legislation ensures that online sellers would be limited to filing one tax return in each state," it explained. "States would be required to provide software free of charge for online sellers, which calculates sales and use taxes on each transaction."

Yahoo encouraged all merchants to keep an eye on how this legislation progresses through the U.S. Congress and said the Yahoo! Small Business team was watching the progression of this legislation closely. "And as always, we remain committed to providing powerful, easy-to-use solutions that help our customers succeed online."

About the author:

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

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