Marketplace Facilitator: Amazon FAQ
Which states is Amazon automatically collecting and remitting sales tax?
Please review the states Amazon is automatically collecting and remitting on behalf of sellers directly from Amazon's publication here.
- We discuss which carts TaxJar supports marketplace collected transactions here.
- Registration and filing requirements vary per state and we recommend reviewing general guidance for each state here.
- If you have a question specific to your current status and business operations, we recommend consulting the state directly, your legal advisor or a sales tax expert.
If Amazon is collecting and remitting sales tax on my behalf, how do I avoid double-paying on sales tax?
- Our system takes into account the states that Amazon is automatically collecting and remitting taxes on your behalf.
- Your Marketplace sales will be reflected accurately in your Reports so that you're not paying twice for sales tax the Marketplace has already remitted. When viewing your individual State Reports, you'll see a section designated for Marketplace sales:
- We explain more in this article about Marketplace Transactions and provide state-specific general guidance for Marketplace Facilitators and your TaxJar Reports here.
- When available, we provide specific instructions per state on how to enter your Marketplace collected sales information when filing manually.
Can I still AutoFile my sales tax returns with TaxJar?
- Yes, your Expected Sales Tax Report takes into account that Amazon has already remitted the sales tax for these states.
- TaxJar's AutoFile service which is always based on the Expected Sales Tax Report will file your sales tax return in compliance with how the state expects to see it.
- To be clear, for these supported marketplaces, you will not be double-paying the sales taxes when you're enrolled in AutoFile.
Do I still need to file returns if Amazon is collecting on my behalf?
As we state here, Amazon will not file a sales tax return for you as many states might require. Your next step depends on whether or not you have nexus in the state and if you make sales on platforms outside of the cart that is automatically collecting sales tax on these states' orders as a Marketplace Facilitator.
Each state varies in their requirements (and we break down these requirements in detail here) so we strongly recommend that you assess your company's nexus requirements per state.
Because we're not able to offer legal advice, we would suggest consulting directly with the state's DOR or with a state & local tax expert (SaLT).