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US Amazon to collect Sales Tax for Sellers in Washington

  • Nov 14, 2017 | Richard Asquith

US Amazon to collect Sales Tax for Sellers in Washington

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.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.