Recently some of our California TaxJar customers have received this message in their email:
Here’s the text transcribed:
Amazon has received a valid and binding legal demand from the California Department of Tax and Fee Administration (CDTFA) requiring that Amazon disclose the following information about your business in 2017:
- Contact information (name, address, and email)
- US Taxpayer Identification Number
To comply with our obligations under the law, we plan to provide this information to the CDTFA by November 6, 2018. In many cases, sellers who register and file taxes in California already provide information on their Amazon business as part of their tax filings. Because each seller’s business and tax needs are unique, we encourage you to consult with a tax advisor to answer any questions you may have.
You also may refer to the following resources in Seller Central:
- Solution Provider Network, a directory with information about several tax advisors: https://sellercentral.amazon.com/gp/help/external/G20168789024.
- Tax calculation services, optional services for calculating U.S. sales and use taxes: https://sellercentral.amazon.com/gp/help/G20078766013.
Thank you for selling on Amazon,
What does this notice mean for Amazon sellers?
This is just another example of state taxing authorities, hungry for their share of eCommerce revenue, doing whatever they can to ensure that sellers with a presence in their state are registered, collecting, and remitting sales tax.
In the brick and mortar world, sales tax compliance has always been a cost of doing business. After the recent supreme court ruling, this same reality is becoming true for eCommerce and marketplace sellers.
If you are currently selling on Amazon and not collecting sales tax in the state of California, you will most likely get a letter from California.
by Lizzy Greenburg
October 24, 2018