Report: Online giant forced to share seller data with Mass. tax officials
After months of pushing back, Amazon is being forced to provide third-party sellers’ details to Massachusetts’ Department of Revenue (DOR).
The online giant received a notice from the state’s DOR, requiring Amazon to disclose contact information, including names, addresses, federal tax ID numbers and phone numbers, as well as the estimated value of its sellers’ inventory stored in Massachusetts warehouses between late 2016 and 2017, according to an email shared on E-Seller Cafe.
The move will help the state of Massachusetts identify which Amazon sellers may owe them unpaid sales taxes. This is also the first public case of Amazon handing over seller data to state tax officials, according to CNBC.
The online giant currently collects sales tax on products it sells directly, but sellers handle their own tax collection. This makes independent sellers responsible for charging sales tax in any state where they have a physical presence, including the states where they store their products, the report explained.
This is not the first attempt for the state’s DOR to collect this information. Amazon initially refused to cooperate in September, the report explained.
According to Amazon’s email to sellers however, the e-retailer is cooperating “to comply with our obligations under the law. We plan to provide your information to the DOR by January 26, 2018.”
Many states have different sales tax laws — and rules about who is responsible for collecting them. This incident is an example of how different states are taking action and requiring online marketplaces — like Amazon — to collect sales tax on behalf of its third-party sellers, the report added.
The online giant received a notice from the state’s DOR, requiring Amazon to disclose contact information, including names, addresses, federal tax ID numbers and phone numbers, as well as the estimated value of its sellers’ inventory stored in Massachusetts warehouses between late 2016 and 2017, according to an email shared on E-Seller Cafe.
The move will help the state of Massachusetts identify which Amazon sellers may owe them unpaid sales taxes. This is also the first public case of Amazon handing over seller data to state tax officials, according to CNBC.
The online giant currently collects sales tax on products it sells directly, but sellers handle their own tax collection. This makes independent sellers responsible for charging sales tax in any state where they have a physical presence, including the states where they store their products, the report explained.
This is not the first attempt for the state’s DOR to collect this information. Amazon initially refused to cooperate in September, the report explained.
According to Amazon’s email to sellers however, the e-retailer is cooperating “to comply with our obligations under the law. We plan to provide your information to the DOR by January 26, 2018.”
Many states have different sales tax laws — and rules about who is responsible for collecting them. This incident is an example of how different states are taking action and requiring online marketplaces — like Amazon — to collect sales tax on behalf of its third-party sellers, the report added.