Amazon marketplace tax collection (USA)
Overview
Cin7 Omni handles orders affected by local laws in the US requiring Amazon to collect and remit taxes on behalf of sellers.
Many US states have passed laws requiring marketplaces like Amazon to act as a Marketplace Facilitator (MPF) for the collection of taxes on behalf of those selling on their platforms.
Amazon’s tax collection role as an MPF
As an MPF, for all sales processed through its platform, Amazon is responsible for calculating, collecting, remitting, and refunding sales and use tax on orders shipped to a jurisdiction (State, District, City, county) that has enacted an MPF law or similar laws.
This is done automatically by Amazon for each affected sales order.
Please select here for more information from Amazon.
States where MPF applies
Please select here for a list of states for which Amazon is automatically collecting and remitting taxes on behalf of sellers.
How Cin7 Omni handles tax when MPF applies
For any Amazon sales order affected by MPF, Cin7 Omni will not download the associated tax. Instead, Cin7 Omni automatically downloads affected orders as “Tax Exempt”. This prevents duplicate tax figures from being uploaded to your accounting software.
How Cin7 Omni Handles Tax When MPF is not applied
To learn how to handle US taxes on marketplace orders when MPF is not applied, please refer to the help page for the accounting software you use:
Tax collection for other marketplaces
Cin7 Omni does not currently support MPF-applied orders in non-Amazon marketplaces. Please refer to the accounting help pages listed above for help in handling taxes when MPF is not automatically applied to orders in other marketplaces.