Should I unlink my Amazon cart now that they are collecting and remitting for me in many states?
Due to economic nexus laws that have been implemented since the 2018 Wayfair vs. South Dakota decision, we recommend keeping your Amazon store linked to TaxJar so that you can monitor if you cross any thresholds that may cause nexus.
- We talk about nexus causing activity and why you might see a state added to your TaxJar Dashboard here.
- We explain marketplace facilitator laws more in detail here on our blog.
Keep in mind that even though Amazon is collecting and remitting on your Amazon sales, the states will expect you to report on these sales if they're expecting you to file a sales tax return.
- 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.
- We tell you how TaxJar handles these marketplace facilitator changes here in our Marketplace Facilitator FAQ.
As we mention here, TaxJar is aware of marketplace facilitator laws and will ensure your reports are updated automatically.
- Your Amazon sales data will be accurately reflected in your Reports so that you are not paying twice for sales tax that Amazon has already remitted.
- If you are enrolled in AutoFile, our system will handle the deduction process automatically for you.