Does Amazon Charge Sales Tax?

[npalen]

What has been your experience in your state?

 

[buckeyefarmer]

Yes, once they established a warehouse in state.

 

[4570Man]

Yes if there’s a warehouse in your state.

 

[sdquick]

It used to be that was part of the bargain of on line shopping. But now you pretty much always pay tax. If amazon has any business in your state, if the seller has any business in your state, if.... That is about the only thing the government is good at, making sure to get your money!

 

[npalen]

I've noticed that they sometimes do and sometimes don't and they do have a warehouse in my state. Maybe depends on where the order is shipped from?

 

[War Eagle 2]

I live in Idaho and the state has gone after Amazon to collect tax. If you buy from Amazon and Amazon is the seller (fulfills the order) then you get charged the tax. If a third party is the seller (fulfills the order then no tax is charged).

 

[Tractor Seabee]

We are stuck in WA, this is their Hdq.

Ron

 

[chiefcook]

I live in Idaho and the state has gone after Amazon to collect tax. If you buy from Amazon and Amazon is the seller (fulfills the order) then you get charged the tax. If a third party is the seller (fulfills the order then no tax is charged).

Same in Arkansas.

 

[finn1]

Yes, plus Michigan announced recently that they will begin collecting sales tax from all online sellers that exceed a threshold of Internet sales dollar amount in the state.

There was a Supreme Court decision earlier this year that cleared the way for this, so many states are following up with plans to collect sales taxes from online retailers.

 

[BTDT2]

Yes in Oklahoma even though no fulfillment in OK. I think most states now require Amazon to enforce state sales taxes?

 

[dnw64]

There is no warehouse in VT, and most often we are charged tax, but quite often not. I haven't noticed a rhyme or reason. For our business I have just "decided" that they do charge tax so I don't have to look at each individual invoice to determine whether I need to pay Use Tax. It is, after all, their policy, that they charge tax. If they haven't collected it, they still are obliged to pay it. That's my philosophy anyways.

 

[houstonscott]

What has been your experience in your state?

States charge sales taxes... you control your State through elections...

 

[Diggin It]

I've noticed that they sometimes do and sometimes don't and they do have a warehouse in my state. Maybe depends on where the order is shipped from?

Just gonna drop this here:

Compensating Use Tax is a tax paid on merchandise purchased from other states and used, stored, or consumed in Kansas on which no sales tax was paid. It is also due if the other state's rate is less than the Kansas rate of 6.50 percent paid at the time of purchase. The tax protects Kansas businesses from unfair competition from out-of-state retailers who sell goods either tax-free or at a lower tax rate. It also assures fairness to Kansans who purchase similar items in Kansas and pay Kansas sales tax. This use tax compensates for the lack of sales tax paid at the time of purchase. Use tax is due whether the property is shipped into Kansas or picked up in another state and brought back to Kansas. It applies only to tangible personal property, labor services are not subject to use tax. Like sales tax, compensating use tax is based on the total cost of the goods purchases, including postage, shipping, handling, or transportation charges.

Kansas Department of Revenue - Division of Taxation - Consumers’ Compensating Use


Not that most ... many ... any residents do it.

Nearly all states that have a sales tax have similar laws. Lack of compliance is why states have gone after websites to do it for them.

 

[Diggin It]

There is no warehouse in VT, and most often we are charged tax, but quite often not. I haven't noticed a rhyme or reason. For our business I have just "decided" that they do charge tax so I don't have to look at each individual invoice to determine whether I need to pay Use Tax. It is, after all, their policy, that they charge tax. If they haven't collected it, they still are obliged to pay it. That's my philosophy anyways.

If you're buying for a business using that philosophy, you might want to consult a CPA.

Sellers don't just decide if they will or not. A small seller using a marketplace site may only be legally required to collect and remit sales tax for items shipped to customers in their own state. A recent Supreme Court decision may change that though and require that same small seller to comply with remote state laws. That will put an additional burden on many and may force them out of business.

 

[dnw64]

If you're buying for a business using that philosophy, you might want to consult a CPA.

Sellers don't just decide if they will or not. A small seller using a marketplace site may only be legally required to collect and remit sales tax for items shipped to customers in their own state. A recent Supreme Court decision may change that though and require that same small seller to comply with remote state laws. That will put an additional burden on many and may force them out of business.

We used to just pay the state use tax on every (taxable) purchase from Amazon. However, since they announced that they are charging tax, I am not going to review each invoice. Period. If we get audited I will pay any owed tax (which I would/should have anyways) and consider any penalties/interest as the price for not spending hours a month trying to figure out whether we need to pay any additional or not.

There are plenty other vendors we deal with that still don't charge tax, and I spend enough time looking for those invoices. In fact that's a job I need to do this afternoon before heading south...

 

[CPTKILLER]

Yes in Texas.