Customer Discussions > Kindle forum

When did Amazon start charging tax?


Sort: Oldest first | Newest first
Showing 1-25 of 26 posts in this discussion
Initial post: Apr 10, 2012 9:42:50 AM PDT
I just ordered a Kindle book and they charged me sales tax. Week before last I ordered something and no sales tax. Just wondering how I missed this lovely bit of information

Posted on Apr 10, 2012 9:44:57 AM PDT
KindlePad says:
Its the change in how books are sold. Amazon is no longer the actual seller, the publishers are and thus sales tax applies.

In reply to an earlier post on Apr 10, 2012 9:48:39 AM PDT
If the publisher of the book has a presence in your state, and digital goods are taxable, it is added to the price.

Posted on Apr 10, 2012 9:49:54 AM PDT
CBRetriever says:
it usually only applies if the publisher has a presence in your state, so all the other books you've bought could have come from publishers outside your state (the next book you buy may have no tax)

Posted on Apr 10, 2012 9:52:10 AM PDT
In Texas, Amazon started collecting sales tax on ebooks on Feb 1, I think it was. I don't know about other states. They still don't collect sales tax on "real" items delivered to Texas addresses.

Posted on Apr 10, 2012 10:02:07 AM PDT
Russ says:
http://www.amazon.com/gp/help/customer/display.html/ref=help_search_1-1?ie=UTF8&nodeId=468512&qid=1334077259&sr=1-1

Posted on Apr 10, 2012 10:06:36 AM PDT
T. Cannon says:
Most states have laws that you as the purchaser are required to report your online purchases that were not taxed at the time of sale and pay the tax directly to the state. Guess how often that happens. :-) So, now States are trying to require online merchants to collect the tax at the time of sale. This is being resisted by the online merchants, but in some cases (such as mentioned above when there is some sort of presence in the state) the State does prevail.

Posted on Apr 28, 2012 7:54:38 PM PDT
Adamonic says:
[Customers don't think this post adds to the discussion. Show post anyway. Show all unhelpful posts.]

In reply to an earlier post on Apr 28, 2012 8:01:46 PM PDT
Zanzibar says:
You must think that Amazon has a choice in collecting taxes. You think they want to mess around with collecting taxes if they don't have to?

Posted on Apr 28, 2012 8:20:24 PM PDT
Bufo Calvin says:
To be clear, Amazon isn't charging tax...it's collecting it.

Generally, people are supposed to pay sales tax (it may be called "use tax") on purchases that they make from out-of-state entities, such as internet retailers, on their annual state taxes.

I do it, although I know it's unusual. It's a bear: it takes quite a while to figure out...what did we buy, have we already paid sales tax on it, if it we didn't, is it an item that is taxable in our state (in California, e-books delivered electronically are not subject to sales tax), and so on. Then, we have to pay a lump sum...this year, it was over $200.

The specific rules vary by state, but if you aren't paying it, you could hypothetically get socked for penalties if you were audited.

What changed significantly was the Agency Model, which came into effect for five of the biggest US trade publishers on April 1st, 2010. Amazon fought it publicly, but that made Amazon just a "sales agent", and the publisher became the seller of record. So, if the publisher has a "nexus" in your state (a building or a sales force, basically), Amazon has to collect the appropriate sales tax at the time of sale, instead of you paying it with your annual taxes.

Amazon supports a national sales policy (not a national sales tax...people get those confused sometimes). That would mean that all large internet retailers would collect sales tax in a manner similar to brick-and-mortar stores.

It would not mean that people would owe more tax, but if you haven't been paying the sales/use tax on your internet purchases, it might mean that you would pay more tax.

It was interesting in Amazon's recent Q1 financial results conference call. Amazon was asked about what percent of their sales have sales tax or VAT (Value Added Tax) collected at the time of sale. The response was about 50% (this includes international sales). The follow up question was whether Amazon felt it had negatively impacted sales, and the answer was basically no...

In reply to an earlier post on Apr 28, 2012 10:22:27 PM PDT
Was that finalized?

In reply to an earlier post on Apr 30, 2012 5:38:48 AM PDT
Apparently so. I saw it in the Houston chronicle front page above the fold Saturday morning.

Posted on Jul 1, 2012 6:54:17 AM PDT
MB Texas says:
[Customers don't think this post adds to the discussion. Show post anyway. Show all unhelpful posts.]

Posted on Jul 1, 2012 6:54:18 AM PDT
MB Texas says:
[Customers don't think this post adds to the discussion. Show post anyway. Show all unhelpful posts.]

In reply to an earlier post on Jul 1, 2012 7:18:08 AM PDT
Bufo Calvin says:
MB, though, you still owe that tax on your annual state taxes, whether Amazon collected it or not, right?

Texas specifically says:

"Do I owe tax on goods purchased via mail-order catalogs or Internet merchandise?
Yes. A seller who uses catalogs or the Internet to sell goods is treated the same as any other seller of taxable items. If you purchase merchandise through a catalog or the Internet from a seller located in Texas, you owe Texas sales tax on the purchase. If you purchase merchandise through a catalog or the Internet from a seller located outside of Texas and use the taxable item in Texas, then you owe Texas use tax on the purchase. An out-of-state mail-order company or an Internet company may hold a Texas Sales and Use tax permit and collect Texas tax. If the out-of-state seller does not have a Texas permit or does not collect Texas use tax, the use tax is due and payable by the purchaser."

http://www.window.state.tx.us/taxinfo/sales/faq_use.html

So, buying the product elsewhere won't save a person any money on the tax, unless that person fails to pay the tax they owe on the product, under state law.

Posted on Jul 9, 2012 9:33:59 PM PDT
This whole tax thing has certainly been upsetting since I buy for a non profit church library that is a tax free institution....so hopefully Amazon will figure out how to make that easy for me, or I will go back to the stores and make my purchases where I get have tax free accounts.

In reply to an earlier post on Jul 9, 2012 9:39:37 PM PDT
Contact Amazon CS about setting up an account for a non-profit org.

In reply to an earlier post on Jul 10, 2012 6:05:24 AM PDT
Heaven forbid you should have to figure out what you need to do as a tax-free institution. Amazon charges you nothing. They're forced by the various governments to be tax collectors for them and for this service they don't get paid.

I think you should go back to stores where someone set up accounts for you.

Good-bye.

Posted on Mar 25, 2013 8:44:15 AM PDT
[Deleted by the author on Mar 25, 2013 9:02:35 AM PDT]

In reply to an earlier post on Mar 25, 2013 8:47:07 AM PDT
Just Peachy says:
Amazon already has lower prices than a lot of retail stores. The sales tax goes to a government entity, not Amazon.

In reply to an earlier post on Mar 25, 2013 8:50:23 AM PDT
Dawn, you owe the sales tax to your state, regardless of Amazon collecting it.

In reply to an earlier post on Mar 25, 2013 8:50:47 AM PDT
You know, don't you, that before Amazon starting adding in the tax for you, that *if* you lived in a sales-tax State, YOU were SUPPOSED to figure out what your sales tax was ON YOUR OWN, and remit it to your State government every year.

You do know that, right? You did do that, right? If not, you're a criminal.

In reply to an earlier post on Mar 25, 2013 9:10:20 AM PDT
Last edited by the author on Mar 25, 2013 9:10:45 AM PDT
Shouldn't it be based on the state it comes from and not the state it goes to?

In reply to an earlier post on Mar 25, 2013 9:23:26 AM PDT
KAragon says:
http://www.amazon.com/gp/help/customer/display.html?nodeId=468512

In reply to an earlier post on Mar 25, 2013 9:27:14 AM PDT
Thank you KAragon
‹ Previous 1 2 Next ›
[Add comment]
Add your own message to the discussion
To insert a product link use the format: [[ASIN:ASIN product-title]] (What's this?)
Prompts for sign-in
 


Recent discussions in the Kindle forum

 

This discussion

Discussion in:  Kindle forum
Participants:  18
Total posts:  26
Initial post:  Apr 10, 2012
Latest post:  Mar 25, 2013

New! Receive e-mail when new posts are made.
Tracked by 1 customer

Search Customer Discussions