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Amazon's Take on Sales Tax Holidays


 Amazon on holidays.

Whether you’re for them or against them, you can’t ignore them. Sales tax holidays are temporary tax-free periods created for a variety of reasons. Some, such as annual back-to-school sales tax holidays, are designed to help taxpayers afford essential items. Others, such as Energy Star holidays, encourage consumers to replace old, energy-thirsty appliances with newer, greener models. And then there are the holidays that exist because they can, such as those that celebrate the Second Amendment.

Tax-free periods create a compliance nightmare for retailers selling eligible items. Here, remote retailers are at a bit more of a disadvantage than brick and mortar sellers. Remote retailers must account for sales tax holidays in numerous states; and because this is America, each holiday comes with its own set of rules and regulations.

Sales tax holidays are such a big deal that Amazon.com has a help page devoted to them on its website: About Sales Tax Holidays. It reads:

Amazon.com is currently participating in sales tax holidays for states in which Amazon.com LLC and Amazon Digital Services, Inc. are required to collect tax….

Note: Sales tax may still be charged on items ordered from other sellers that list products for sale via the Amazon.com website. If your items are fulfilled by a seller on our website, you must contact the seller directly.

In other words, even though Amazon is trying to make minimize the impact of sales tax holidays on businesses, it can’t entirely obliterate it.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.