April 23, 2018
The controversy over whether or not states can collect state sales tax from retailers without a physical presence in the state is definitely a hot button issue these days. With many tax laws pre-dating the internet boom, these laws don’t always specifically account for e-commerce giants like Amazon.
For many sellers and brands on Amazon, paying state sales tax is a real source of contention – whether sellers should have to pay, how far back the tax payments could potentially go, and how complicated it can be to calculate since state tax laws vary greatly from state to state.
Now, it looks like the Supreme Court is getting involved and may even have an official position by June. There are a couple of ways this could go – with sellers being responsible for their own state sales tax nexus, e-commerce sales being regulated differently than brick and mortar sales, and even the possibility of Amazon handling the state sales taxes for all sellers.
Even if Amazon takes control of the state sales tax for all sales on the platform however, we can’t imagine this will roll out overnight. Instead of worrying about backdated taxes owed to the states, Beech Tree Trading partners with a company to handle all state sales taxes for our brands. We’d rather play it safe and give our clients the peace of mind, knowing we won’t have any tax surprises regardless of what the Supreme Court and Amazon decide!
If you’re a brand selling on Amazon – what are your thoughts on the state sales tax dilemma? And if you’re not selling yet – does this additional cost per sale have any influence on your eagerness to get started? We’d love to know!
Leave a comment below or send us a note!