What Amazon’s Sales Tax Decision Means For E-Commerce Businesses

by MR Magazine Staff

The wait is over to find out where Amazon will next collect sales tax. On April 1, the e-commerce giant began taxing deliveries in Hawaii, Idaho, Maine and New Mexico. These are the final four states to benefit from Amazon’s decision to collect and remit sales tax. The e-commerce giant is now collecting in 45 states plus the District of Columbia (Alaska, Delaware, Montana, New Hampshire and Oregon don’t have a general state sales tax). As a successful company run by bright people, if Amazon does not have a legal requirement to collect sales tax everywhere then it must have had a good business reason to start doing so. Naturally, many companies are wondering how Amazon’s move will impact their e-commerce businesses. They may be wondering: Do other e-commerce sellers now have to start collecting tax? What about Amazon’s third-party sellers? How can I ensure my business responds in a compliant way? Sales tax rules for e-commerce sellers remain anything but simple. Here’s what e-commerce businesses need to know about how Amazon’s decision may impact their e-commerce business. Read more at Retail Dive.