Amazon will begin collecting Connecticut sales tax on behalf of FBA sellers starting December 1, 2018.
Since the South Dakota v. Wayfair ruling on June 2018, many states have enacted legislation requiring online marketplaces like Amazon to collect sales tax. These new laws require marketplace facilitators like Amazon and remote sellers to collect and remit sales tax.
Other marketplaces like eBay and Etsy have also started to collect and remit sales tax on behalf of their sellers.
If you’re an FBA seller, then Amazon will start to collect Connecticut sales tax on December 1, 2018. Connecticut will join these other states in requiring marketplaces to collect sales tax:
- New Jersey
If you’re using SellerZen to automatically sync your Amazon account and import orders into QuickBooks Online, then you’ll have to configure sales tax agencies in QuickBooks Online so that our platform can properly process these orders.
If you’re not automatically tracking these Marketplace Taxes through SellerZen, you may want to track them manually in QuickBooks Online. Whether you track these marketplace taxes automatically or manually, you’ll be able to run a report to see how many transactions and how much in sales you’ve done for each state.
These reports in QuickBooks Online will serve as a record in the event anyone requires the information.
View our guide for setting up sales tax in QuickBooks Online.
Click here for a direct link to the PDF for Connecticut’s sales tax legislation regarding out-of-state sellers on pages 2-3.
For out-of-state, including internet sellers, the PDF states:
The legislation changes the nexus standard, so that out-of-state retailers that regularly or systematically solicit sales of tangible personal property in Connecticut must collect and remit sales tax if:
1. Their Connecticut sales exceed a threshold of 200 transactions during the preceding twelvemonth period (ending September 30) (previously, the threshold was 100 sales);
2. Their gross receipts are $250,000 or more during that twelve-month period.
Other states will have different legislation regarding thresholds for remote sellers.
Some states have already enacted similar legislation with effective dates that will begin within the next few months. As their laws go into effect, you’ll need to add those tax agencies in QuickBooks Online if you use SellerZen.
If you sell on any major online marketplace like Amazon and eBay, then you’ll want to consult with your tax advisor sooner rather than later.