- A South Carolina ALJ held Amazon Services, LLC liable for uncollected sales tax, penalties, and interest on third-party marketplace sales for Q1 2016, pre-Wayfair.
- The ALJ found Amazon was effectively the retailer/seller at the point of sale under state law, describing the marketplace arrangement as consignment-like and rejecting Amazon’s claim it only provided non-taxable services.
- The ruling relied on South Carolina statutory definitions that include sales of property owned by others, sales on consignment, and persons selling others’ tangible property, making Amazon the deemed retailer responsible for collection.
- The decision suggests similar pre-marketplace-facilitator periods could be assessed against Amazon and potentially other marketplaces, and the DOR may expand the assessment to additional periods.
- Amazon has not yet said whether it will appeal.
Source: salestaxinstitute.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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