Amazon recently notified sellers that it would begin collecting and remitting sales tax on behalf of third party sellers starting April 1. This is the result of the newly enacted “Marketplace Facilitator Law” which Washington has also enacted. Amazon is also collecting tax on all sales in Washington. Normally, Amazon does not collect sales tax on third party sales that are not “fulfilled by Amazon.” Guidance on whether market place sellers have other compliance or filing requirements is still evolving.
For more information on how this new law may impact your business, contact your state and local tax professional.