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Amazon insists that its retail sellers not collect sales tax

Amazon.com, busy fighting off attempts by many states to collect sales tax, is now insisting that retail sellers on Amazon who are required by their state's law to collect sales tax for shipments to buyers in their state not collect sales tax - or face suspension by Amazon.

Now, not only does Amazon not want to pay sales tax on orders, it is insisting that retail sellers on Amazon either 1) pay the sales tax themselves, or 2) break the law by not charging sales tax on sales shipped into the state where the retailer is located.

That's a bad call Amazon. It's one thing to fight state moves to make you collect sales tax. It's another thing completely when you encourage retailers on your site to ignore or break the law as a condition of doing business on your site.

Amazon refuses - or is unable - to provide the means for Amazon sellers to collect sales tax on Amazon.com. And yet Amazon would have us believe that it uses cutting edge technology? Pathetic. Every online shopping cart out there can do this. Maybe Amazon should try MIVA.

July 18, 2009 07:27 PM    Regulatory Process

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