Sales Tax Questions
Intermediate Quick Answer

Does Amazon cover all states for sales tax, or are there gaps in facilitator coverage?

⚡ TL;DR

Amazon collects and remits sales tax in all 45 states with a sales tax plus DC — its rollout to all states was completed in 2021–2022. Coverage applies only to Amazon transactions; your own website, Shopify store, and other channels remain entirely your responsibility. Alaska local taxes and direct B2B sales outside Amazon are the only meaningful edge cases.

Amazon covers all 45 sales tax states, no gaps remain. The nuances are around B2B exemptions, seller-fulfilled vs. FBA distinctions, and what happens outside the Amazon channel.

Key takeaways

  • Full state coverage: Amazon collects and remits sales tax in all 45 states with a sales tax plus DC; the rollout to all states was completed in 2021-2022
  • Alaska: no statewide sales tax; Amazon does not currently collect local Alaska taxes through ARSSTC on third-party sales (sellers may have their own ARSSTC obligations)
  • No sales tax states (MT, OR, NH, DE): nothing to collect; Amazon correctly collects $0 for these destinations
  • Amazon Business exemptions: Amazon manages exemption certificates for business buyers in Amazon Business; sales to exempt buyers are processed as tax-exempt by Amazon; sellers don’t separately collect on those transactions
  • FBA vs. seller-fulfilled: Amazon collects for both FBA and seller-fulfilled orders on the marketplace; the collection obligation is based on the marketplace sale, not the fulfillment method
  • What Amazon does NOT cover:
    • Sales from your own Shopify/website, even if products are the same
    • Sales through other platforms (Etsy, Walmart) — those platforms handle their own collection
    • Wholesale or B2B sales made directly to business customers outside Amazon
  • Seller responsibility for direct sales: if you sell direct-to-consumer (DTC) alongside Amazon, all DTC sales require your own tax collection; Amazon’s coverage is Amazon-specific
  • Verifying Amazon’s collection: download Amazon’s sales tax reports from Seller Central to confirm what was collected and remitted by state; reconcile against your DTC sales for filing

Frequently asked questions

Are there any states where Amazon doesn't collect sales tax for third-party sellers?
As of 2023, Amazon collects and remits sales tax on third-party marketplace sales in all 45 states with a sales tax plus Washington DC. There are no remaining state-level gaps in Amazon's coverage. Amazon completed its rollout to all applicable states in 2021-2022. The five states with no sales tax (MT, OR, NH, DE, AK statewide) have nothing to collect.
Does Amazon collect sales tax on Amazon Business (B2B) sales?
Amazon Business collects sales tax on behalf of sellers for most transactions, but B2B sales to buyers with valid exemption certificates on file in Amazon Business are processed as exempt. Amazon's exemption handling in Amazon Business means sellers don't collect tax on those exempt sales, but sellers should understand that Amazon is managing the exemption certificate collection for their account.

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