US Amazon to collect Sales Tax for Sellers in Washington
- US Sales Tax
- 15 November 2017 | Richard Asquith
Amazon will start collecting Sales Tax on behalf of its marketplace sellers in Washington state from 1 January 2018.
Amazon already collects Sales Tax on its own sales, which account for approximately half of all trade on its marketplaces. Amazon is headquartered in Seattle, Washington.
US Sellers are required to charge and collect and pay US Sales Tax where they have ‘nexus’, substantial physical connection such as an office or employees – and includes holding stock at an Amazon fulfilment centre in the state.
The news came from Amazon’s own Seller Forums this week. It follows Washington’s pioneering Marketplace Fairness Law, which obliges online marketplaces to collect and remit Sales Tax on behalf of e-commerce sellers on their platforms. Several states share that stance: Minnesota, Pennsylvania, Rhode Island, and Washington have all enacted laws that hold marketplace facilitators like Amazon liable for tax on their marketplace sales.
As part of the NAFTA renegotiation completed on 1 Oct 2018, the US has secured a rise in the duty-free threshold for e-commerce sales from...
US legislators in Congress are to consider two bills providing for a consistent imposition of the ‘economic nexus’ Sales Tax test, including a $10million annual sales...
On 21 June 2018, the US Supreme Court introduced a new ‘economic nexus’ test to determine if out-of-state online retailers are responsible for charging Sales...