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US Sales Tax (‘Amazon Tax’) on internet commerce takes grip

  • VAT
  • 05 March 2013 | Richard Asquith

US Sales Tax (‘Amazon Tax’) on internet commerce takes grip

California, US, is reporting good initial revenues from its new US Sales Tax on e-commerce sales by out-of-state online retailers. This is often dubbed the ‘Amazon Tax’, after the ubiquitous online retailer.

California introduced the tax to equalise the commercial terms vs. in-state online retailers and traditional high-street stores who have always been subject to sales tax. In the last quarter of 2012, the take was just under $100 million. This compares to a total annual target of $11 billion across the whole of the US, set by the University of Tennessee.

Many other states will be introducing similar taxes in the forthcoming months. It is already up and running in nine states. New York is still battling with online retailers over its new sales tax, and expects a court decision in the summer.


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 is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.