Internet Sales Tax Law: Amazon Gives Account Info To Rhode Island

Internet sales tax lawyerDue to Rhode Island’s Internet sales tax, Amazon is handing over the names and addresses of online sellers who sold goods to residents in 2017.

Amazon to Online Sellers: We Sent Your Info To Rhode Island

Recently, Amazon.com wrote selected sellers explaining that the e-commerce giant had handed over their contact information to Rhode Island authorities. Some recipients scratched their heads and wondered: “What does Rhode Island want to do with me? I don’t live there.”

In the interest of brevity, here’s the legal scoop on Amazon’s letter regarding Rhode Island’s Internet sales tax:

  • Rhode Island collects sales tax from sellers with a physical presence within — a.k.a., a nexus to — the state.
  • Using a warehouse, vendor, office, or sales person within a state triggers sales tax responsibilities.
  • Online sellers should check if their vendors are Rhode Island-based, or if any warehouses in the state hold their goods. If yes, it’s wise to consult with an e-commerce tax consultant who can handle the logistics and possibly uncover cost-saving ways to restructure your business.

Online Sellers Must Register In Sales Tax States

Businesses must register with every state in which they remit sales tax. The concomitant paperwork can prove exceptionally complicated; because as stated earlier, simply using a warehouse or vendor in a given state can tie you to it for tax purposes.

If you need help sorting through it all, give us a call.

What Will Rhode Island Authorities Do With The Amazon Online Sellers Data?

Rhode Island authorities will likely compare Amazon’s data with the state’s business registration records. Agents will research discrepancies. Then, people with a nexus to Rhode Island, who previously failed to register or submit taxes, may have some negotiating to do.

If you find yourself in that position, our e-commerce tax team can, and will, help. We’ve untangled similar knots for other online sellers across the country.

Contact An E-commerce Lawyer

Are you an online seller or e-commerce business that needs help with Internet sales tax? We can help. Our e-commerce legal team helps individuals and companies across the country — and overseas — overcome tax controversies and build beneficial tax positions. Let’s discuss how we can assist you. Get in touch today to begin the conversation.

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