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Amazon and Marketplace Tax Collection (US)

Last updated 08/10/2020

How Cin7 handles orders affected by local laws in the US requiring Amazon to collect and remit taxes on behalf of sellers. 

Overview


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 click here for more information from Amazon.

States Where MPF Applies


Please click here for a list of states for which Amazon is automatically collecting and remitting taxes on behalf of sellers.

How Cin7 Handles Tax When MPF Applies


For any Amazon sales order affected by MPF, Cin7 will not download the associated tax. Instead, Cin7 automatically downloads affected orders as “Tax Exempt”. This prevents duplicate tax figures from being uploaded to your accounting software.

How Cin7 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:  

Quickbooks Desktop

Quickbook Online

Xero

Tax Collection for Other Marketplaces


Cin7 does not currently support MPF-applied orders 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.