Amazon Laws and Online Retailers

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Many states have crafted Amazon laws that redefine what constitutes a physical presence, for purposes of nexus, in order to impose tax on businesses that are not physically located there. There are two types of Amazon laws, and each redefines physical location in a different way. Any business, big or small, that sells its products online could be subject to additional tax in these states, and should determine whether it has an obligation to collect sales tax in order to avoid getting caught off-guard in an audit. The article below provides a brief description of these Amazon laws, what activities put businesses at risk.

Amazon Laws and Online Retailers