Amazon and Etsy to Start Collecting Sales Tax Today in Oklahoma

Etsy and Amazon will start to collect sales tax today on all orders shipping to residents of the Sooner State.

Oklahoma becomes the third state after Washington State and Pennsylvania to require marketplaces to collect the tax.

eBay to date has not complied with marketplace facilitator laws. Apparently, they believe that since they do not have any property in these states, they are not required to do so.

READ MORE: The Fuzzy Math by States in Sales Tax Case South Dakota v. Wayfair

Etsy appears to have voluntarily submitted to these sales tax marketplace facilitator laws, despite not having a physical presence

However, Oklahoma’s law seems to skirt the physical presence rule for marketplaces, but instead provides an alternative solution to require marketplaces and sellers to report use tax requirements to shoppers in Oklahoma.

Here are the details of the new Oklahoma law, which was passed earlier in the year.

Note: Remote sellers may also have to file use tax notices to Oklahoma residents under the new law. So it would be wise for all sellers to review Oklahoma’s sales tax law.

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