Some Monsoon sellers received the following email from Amazon regarding Rhode Island tax law:
Under a new Rhode Island state law, Amazon is required to disclose to the Rhode Island tax authority the following information about sellers who made sales to Rhode Island customers in 2017:
- Seller contact information (name and address).
To comply with this obligation, we plan to provide your information to the Rhode Island Department of Revenue by February 15, 2018.
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 seller resources:
- Solution Provider Network: a directory with information about several experienced tax advisors.
- Tax calculation services (sign-in required): optional services for calculating U.S. sales and use taxes.
Thank you for selling on Amazon.
The Amazon Services team
In light of this email and Amazon’s tax collection/remittance for orders shipped to Washington state, I’m sharing a couple articles with more information about the ongoing discussion of state tax collection for online retailers and nexus:
The Seattle Times: Amazon pulled into another sales-tax fight as states go after third-party sellers on its marketplace
Also, you can view Amazon's tax guidelines here.
While we at Monsoon can’t advise on tax collection and how online and marketplace sellers should respond to these events, we are posting this to encourage conversation on the topic. It would be good for all customers to get a sense of how impacted sellers are handling the sales tax issue and we are hoping that folks will share their experiences and practices.