California will follow other states in forcing Amazon to collect and remit sales tax on behalf of its 3rd party merchants. California’s new marketplace facilitator rule will go into effect on October 1, 2019. CA Amazon Sales Tax.
Many of our clients at Seller Accountant have been waiting on this clarity since last year’s landmark supreme court ruling and clarity has come. Starting in October, Amazon will have to collect and remit sales tax for all products sold into CA even if a 3rd party merchant is the seller.
How does California’s New Impact Non-Amazon Sales?
So how does this impact other channels? If you sell on your own website or on a marketplace that doesn’t meet the minimums set forth by Amazon then you will still need to collect and remit sales tax on those sales. But all of the popular marketplaces including Amazon will be forced to collect on your behalf.
What’s unclear to me is what impact this will have on sellers who are already filing in CA. Will CA allow them to remove the filing status or will they require regular “zero-return” filings like a handful of other states do? I’ll update this article as I learn more on that front.
The Full Text of the New Sales Tax Bill
Here’s the full text of the new CA Marketplace facilitator bill. CA Amazon Sales Tax.
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