With the Supreme Court currently deliberating on how to proceed with online tax laws, there is reportedly concern regarding the effect new laws may have on Amazon sellers. “We’re in an existential crisis right now,” Paul Rafelson, Chairman of the Online Merchants Guild told Retail Dive in a recent article. “There’s so much of the community that is not going to be around, and I don’t think people realize that, in six months, maybe a year when the full force of what is happening is realized.”
To sum up the issue, Amazon does not collect sales tax on behalf of third-party sellers in the majority of states — they must be accountable themselves. “Before the merchants realize it, they could have a six-figure tax compliance bill,” according to Rafelson.
The proposed tax changes should only be a concern for Amazon sellers that are either not paying attention or precariously betting their business on the off chance that cash-strapped states will leave money on the table. Future-proofing an Amazon selling business can be as simple as collecting sales tax in all applicable states.