I have been predicting for a while that both eBay and Amazon will begin collecting —and paying state sales tax in every state based on the recent Supreme Court decision allowing states to do this.
It is happening slower than I thought –but it is happening. This week, Amazon added Idaho and New York. Every week or two, you will see Amazon add more states.
eBay is moving a little slower, but they will get there too.
Based on changes to Idaho and New York State tax law, Amazon has started calculating, collecting, and remitting sales and use tax for all orders shipped to customers in both states on June 1, 2019.
Currently, services provided in New York are not included in Marketplace Tax Collection. Amazon is currently working with the state of New York to confirm the marketplace’s responsibility as it relates to services and your existing tax settings will continue for services. Services provided in Idaho are included in Marketplace Tax Collection.
For all other orders, your existing tax calculation settings, order details, and payments reporting will update automatically to reflect Amazon’s responsibility. Changes to your tax settings or seller account are not required based on the state law changes. However, you can consider working with your tax advisor to determine if your business has any other ongoing tax remittance or reporting obligations.
Answers to common questions are available in the Marketplace Tax Collection FAQ.
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