2017 Amazon FBA Sales Tax Amnesty

24 states and Washington DC are participating in a sales tax amnesty for Amazon FBA sellers. Apply for amnesty between August 17, 2017 - November 1, 2017.

Amazon State   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.

Amazon FBA Sales Tax Amnesty

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:

  • Alabama
  • Arkansas
  • Colorado (Upcoming Amazon state)
  • Connecticut  Amazon State
  • Florida  Amazon State
  • Idaho
  • Iowa
  • Kansas  Amazon State
  • Kentucky  Amazon State
  • Louisiana
  • Massachusetts  Amazon State
  • Missouri
  • Minnesota  Amazon State
  • Nebraska
  • New Jersey  Amazon State
  • North Carolina
  • Oklahoma
  • Rhode Island
  • South Dakota
  • Texas  Amazon State
  • Tennessee  Amazon State
  • Utah (Upcoming Amazon state)
  • Vermont
  • Washington DC
  • Wisconsin  Amazon State

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.

Sign up now

Learn More

Have more questions about the Amazon FBA sales tax amnesty?

Sales Tax Amnesty FAQ
Sales Tax Amnesty Video
Official MTC Page

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.

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