2017 Amazon FBA Sales Tax Amnesty
Twenty-three states and Washington D.C. are participating in a sales tax amnesty for Amazon FBA sellers. Apply for amnesty between August 17, 2017 - October 17, 2017.
State with Amazon FBA Warehouse
What is the Amazon FBA Sales Tax Amnesty?
The Amazon FBA Sales Tax Amnesty is designed to help online marketplace sellers who have sales tax nexus in a state, but have not been collecting sales tax in that state, to become compliant and collect sales tax going forward.
The amnesty removes all fines and penalties for any sellers who are worried that coming clean after a long period of not collecting sales tax may financially harm their businesses. (With the exception of Wisconsin, which does require a lookback period and possible repayment of back sales tax.)
If you have sales tax liability in one of these states, you can apply for amnesty through the “Online Marketplace Seller Voluntary Disclosure Initiative“ and get off the hook for paying penalties and interest for uncollected sales tax:
- Colorado (Upcoming Amazon state)
- New Jersey
- North Carolina
- South Dakota
- Utah (Upcoming Amazon state)
- Washington DC
Learn more about state-specific provisions and rules regarding the sales tax amnesty.
Online marketplace sellers (such as 3rd party sellers using Amazon FBA) can take advantage of the Online Marketplace Seller Voluntary Disclosure Initiative as long as you meet the following criteria:
1. Your business is not currently, and never has been, registered to collect sales tax from buyers in that state.
2. Your business has never had any other contact with the state regarding sales tax, income tax, franchise tax or other tax.
Should you take advantage of the amnesty?
Before you decide to take advantage of the amnesty, you should do three things to know your numbers. TaxJar can help you out with the following:
- Determine where you have sales tax nexus.
- Gather all your sales data from the past 4 years.
- Determine your past due sales tax liability.
Sign up for TaxJar today to discover your potential sales tax liability and determine if you want to take part in the amnesty.
TaxJar is Here to Help
Our automated reporting solution can determine where you have nexus based on Amazon FBA warehouses and how much in back taxes you owe. These numbers help you make an informed decision about whether or not you should participate in the sales tax amnesty.
Ready to apply for amnesty?
Fill out your application at the Multistate Tax Commission website.
Get Started with TaxJar & Amazon
Learn how to link your Amazon account to TaxJar in this walkthrough video.
Trusted by More Than 9,000 Customers
Read Our Reviews From Amazon Sellers Like You
"TaxJar gives me peace of mind, I can easily sort out what would have been a huge problem quickly and efficiently. No one likes dealing with tax in particular paying it but using the TaxJar website makes this problematic event easy. Would recommend."
"We have been using TaxJar for a couple of years now. We love it. It makes filing our sales taxing so easy. And Fast, The time that we save is worth every penny that we pay for Tax Jar."
"TaxJar is a must have for FBA Sellers. I was overpaying sales tax by about 500% because I didn't understand sales tax (at all really!). TaxJar makes it simple to figure out what you owe, and puts you at ease by illustrating clear transaction data. HONESTLY just install it, if you don't love it just remove it... will only take you 10 minutes and you won't look back!"
"Tax Jar has been great for me for over a year now with them. Thanks Tax Jar! Tax Jar is great. They have guides that teach you, and running my business with Tax Jar has been simple and very user friendly. I have never filed tax myself and with Tax Jar it's no stress. Also, very quick to respond to your questions, along with great customer service."
"TaxJar has been an absolutely invaluable asset for our business! Along with keeping track of which states we collected sales tax from and how much, TaxJar also has great support. There are blogs, articles and step-by-step how to's for those of us who are unfamiliar and very intimidated with handling sales tax. Excellent team!"
“Tax Headaches are no longer much of an issue with the Tax Jar professionals. They take care of the details with filing taxes in the selected states that I do business with each month. I am so glad this service is available for online sellers! Many others recommended this company when I first started my business. Two thumbs up for TJ!”
"Great Service!Tax Jar makes it simple to figure your tax payments. I am able to sync my Amazon account as well as our own website and it takes the hassle of having to calculate it ourselves. Easy to install. Highly recommended."