Purchasers from Amazon Responsible for StateTaxes
Amazon has enjoyed an advantage over their competition. They have not had to add tax to the purchase amount in states where they don’t have a physical presence. Slate reported, “According to Quill Corp. v. North Dakota, a 1992 Supreme Court ruling, companies are only required to collect sales taxes from their customers when they have a presence in the state in which they reside.”
This has been a sore spot for many of Amazon’s competitors. Many of them feel that if they should have to handle the taxes for customers, so should Amazon. This advantage has made them undersell big competitors like the Apple Store and Best Buy.
Purchasers from the Amazon site may think they are getting a better deal. In reality, there may be taxes owed, but it won’t be by Amazon. What many people in certain states like Arizona don’t know about their purchases on Amazon, is that it is going to be up to them to keep financial records of what taxes are due. At the end of the year, when they file their tax returns, these taxes should be included in any amount owed to the government.
According to the Arizona Republic, “If you buy something online from a retailer who doesn't have a physical presence in Arizona and they don't charge state tax or the tax from the state where they're located, then you're probably liable for the use tax - the 6.6 percent tax. The safest thing to do is if you buy something online and you get a receipt, save it. It'll probably show if there was any sales tax from the state where it was charged. If there's not and there is no Arizona tax, then you should think about paying the use tax on that.”
What if you haven’t kept all of your Amazon receipts? Go to your account page on Amazon and under Order History, click on Download Order Reports. This tool allows you to put in the date range of purchases to request a report of purchased items.
According to Amazon’s site, “Items sold by Amazon.com LLC, or its subsidiaries, and shipped to destinations in the states of Kansas, Kentucky, New York, North Dakota, or Washington are subject to tax.” It is wise to check with your state to see what your tax obligation is. For more information from Amazon regarding taxes, click here.