Amazon, Sales Tax, and You

February 10th, 2021 Posted by 3rd party sellers, Amazon, Brand Management 0 thoughts on “Amazon, Sales Tax, and You”

After June 21, 2018, South Dakota v. Wayfair Inc. Supreme Court decision, multiple states have started implementing requirements for online retailers to remit sales tax for merchants that don’t have a physical presence there. States will require merchants to collect sales taxes, which will allow those jurisdictions to rely less on consumer-reported use taxes. This will obviously require more work for online sellers.

How is your business coping with this change? Are you collecting in all the jurisdictions that have new rules set and remit sales tax on direct-to-consumer orders? If not, here are a couple of things to consider. First of all, Amazon has been collecting sales taxes nationwide since April 1, 2017, and has recently added 11 new states to collect and remit taxes on behalf of its 3rd party sellers, bringing to the total number of jurisdictions that have this service to 45.

The newest jurisdictions are:


  • Arkansas
  • Indiana
  • Kentucky
  • Louisiana
  • Mississippi
  • New Mexico
  • Ohio
  • Puerto Rico
  • Rhode Island
  • Virginia
  • West Virginia
  • Wyoming


Not sure how to sell on Amazon as a 3rd party seller. No worries, you can sell through an authorized reseller. Selling to an authorized reseller generally does not require sale/use tax collection either, if that seller has a resale certificate or located in a state with no sales/use tax. Avalanche Industries is just one of those sellers. Consider partnering with us. We know all about selling on Amazon and consistently being one of the top Amazon 3rd party Sellers in the USA. Reach out to us today to go over the benefits of having Avalanche Industries as an authorized exclusive reseller on Amazon.

DISCLAIMER: We are not a CPA or an attorney firm, this article is not intended as legal advice or an opinion. You should always contact your CPA or an attorney for tax-related questions.


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