Last updated 08/10/2020
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.
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.
Please click here for a list of states for which Amazon is automatically collecting and remitting taxes on behalf of sellers.
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.
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:
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.
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