Amazon has been battling with Massachusetts for months but will need to turn over the names and FEINs of third party sellers in the state.  In addition, Amazon will be required to supply the value of the inventory stored in the state for each third-party seller.

What does this mean?  If you use Amazon's FBA program, and you have inventory stored in Massachusetts and you're not currently collecting sales tax in the state, you should expect a letter from the state.  Massachusetts will certainly use this information to go after the third party sellers and force them to register and collect sales tax prospectively and potentially pay the back sales taxes.

https://www.cnbc.com/2018/01/23/amazon-will-turn-over-third-party-seller-tax-data-to-massachusetts.html?__source=sharebar|linkedin&par=sharebar

Expect other states to follow suit.

If you are an Amazon FBA seller and wonder what this means to you, please reach out to TaxConnex for assistance at www.taxconnex.com.

 

Brian Greer

Written by Brian Greer