amazon and state taxes

amazon Marketplace orders may not be charging state taxes

It has recently come to our attention that not all Amazon Marketplace orders are charging the appropriate state taxes (third party sellers, not orders fulfilled directly with Amazon.com). In order to remedy this, we recommend that you send your bookkeeper all of your receipts from the Amazon Marketplace since January 1, 2019. Your bookkeeper may need to open a Sales & Usage Tax account for each state that you do business in so that they can pay those taxes. This will ensure, come audit time, that you are in compliance with state laws.

One other way around this issue in the future is to ask your employees not to purchase from third party resellers on Amazon.com. Whatever savings you may see during the initial purchase, may cause additional headaches down the road.

Below you can find the links to read Amazon.com’s policies on this issue.

Amazon.com - About How Tax is Calculated

You can read Amazon.com’s policy on How Tax is Calculated on their site

Amazon.com - About Tax on Items Sold by Sellers on Amazon

You can read Amazon.com’s policy About Tax on Items Sold by Sellers on Amazon’s site

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