Is Amazon as a Merchant required to collect sales tax from Customer when you are a reseller on Amazon.ca

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Arnold Schofield
Jan 29, 2017 07:45 AM 0 Answers
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The short answer is if you are selling to an end user then you will be responsible for collecting and paying the tax to the taxing board in your State if you have a physical prensence in the state. Their are a few exceptions like New Hampshire which has no sale tax currently. If you are located in CA and selling Amazon Cloud Services to someone in CA and billing that end user you must collect and pay those taxes. It’s murkeeir when you do not have a phycsical presnnce in the State where you are selling the product or service to the end user. Look specifically to whom is billing the end user. If you have no presence in the State the end user is supposed to pay a use tax to the goverment taxing authroity in that State. Very few people are aware of use taxes and even fewer follow through unless the State taxing authority contacts them. Be careful that you are referring to a reseller program whereby you buy the product and resell to an enduser and not an affiliate program. In an affiliate program the entity such as Amazon sells the product to the end user and pays you a commission for bringing that sale to Amazon. There are programs called reseller but they are really affiliate programs. Look to the end user. If you are a middle man or not selling to the ned user you should obtain a resale exemption in your State from the taxing authority. Remember that sales taxes can be from the State, county or city. Thus each may have a sales tax requirement.

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