Publishing/Writing: Insights, News, Intrigue

02/14/2011

Amazon, Barnes & Noble and Sales Tax


Question: Should e-book retailers have to charge sales tax in the state where their books are sold?

Hummm, interesting point; and all readers are encouraged to chime in…

Amazon is doing everything in their power to avoid collecting sales tax…even to the point of  threatening to terminate its affiliate program in certain states that may enact e-fairness legislation that requires Amazon to collect sales tax due on purchases by residents in those states and thereby putting their online affiliates out of business. Fair or unfair?

This Amazon conundrum has caused B&N to try and recruit the probably-pissed-off Amazon affiliates.

Sure, why not?

This blurb from Publishers Weekly: 

Barnes & Noble Courts Amazon Affiliates 

With Amazon determined to avoid collecting sales tax in as many states as possible for as long as possible, Barnes & Noble issued an open letter to Amazon affiliates urging them to sign on to its affiliate program, which it says has over 13,000 members. As part of its strategy to limit the states where it collects sales tax, Amazon has ended affiliate programs in a few states that have passed legislation calling for all online retailers to collect sales tax from out-of-state e-tailers. 
 
“We understand that Amazon.com has threatened to terminate its affiliate program in certain states that may enact e-fairness legislation that requires Amazon to collect sales tax due on purchases by residents in those states.” the letter begins.”Barnes & Noble is disappointed to hear that Amazon would threaten small businesses’ livelihood rather than comply with state law.” In large part because its stores gives it “nexus” in all states, B&N already collects sales tax for both its bricks-and-mortar stores as well as its online business. “Barnes & Noble wants Amazon.com affiliates who have been terminated to know that you are welcome to join the Barnes & Noble affiliate family. If Amazon doesn’t want you, we do! And, we will take care of collecting and remitting all sales taxes due on BN.com sales to its customers so you and our customers don’t have to worry about being hassled or prosecuted by state tax auditors,” the letter, signed by John Foley, president of BN.com, said.
Read and learn more

 
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