Amazon Instituting 'Marketplace Tax Collection' in Pennsylvania

Amazon has informed third-party sellers that it will soon start collecting sales tax on shipments to Pennsylvania, CNBC reported. It cited an announcement in the company's seller portal, which is  available only to marketplace merchants, that beginning April 1, "Amazon will calculate, collect, and remit sales tax for orders shipped to customers" in the state. An Amazon spokesperson confirmed the policy.

Pennsylvania joins Washington as the two states that are currently part of a new service called "Marketplace Tax Collection." CNBC noted that lawmakers in Pennsylvania passed a bill last year requiring Internet retailers to charge and collect sales tax, leveling the playing field for physical stores. The new law "requires sales tax collection regardless of whether the merchant has a physical operation in the state, so if a small clothing business in Atlanta sends a dress to Philadelphia, it now has to charge and collect the 6% sales tax. To date, Amazon has collected tax on items that it sells but has left it to third-party merchants on the platform to handle their own tax collection where applicable."

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